Former FTX Engineering Chief Nishad Singh Sentenced to Three Years Probation After Directly Confronting SBFs Funding Shortfall
As several top executives of FTX have pleaded guilty to charges and have come forward to accuse SBF, former FTX engineering chief Nishad Singh, who once lived with SBF in a luxury Panama residence, has voluntarily cooperated with U.S. prosecutors following the bankruptcy of FTX in 2022. Recently, U.S. prosecutors stated that due to Singh’s positive cooperation, he has been spared prison time but will still serve three years of probation.
Singh had confronted SBF directly about funding issues and contemplated suicide
Nishad Singh shared a $35 million penthouse in the Bahamas with SBF. Singh revealed that before FTX’s collapse, he confronted SBF directly in September 2022, questioning the funding gap faced by FTX. However, SBF responded that he would raise funds and cut costs. Singh stated that as FTX neared collapse, he experienced immense pressure and even had suicidal thoughts. Ultimately, Singh returned to the U.S. in November 2022 to assist prosecutors in their investigation, admitting to six felony counts of fraud and conspiracy. Prosecutors noted that Singh provided crucial evidence, and his culpability is considered less severe than that of SBF and Caroline Ellison; hence, he was spared prison time but must undergo three years of probation.
Prosecutors commend Singh’s cooperation, which is sure to “restore the truth”
Both Singh’s attorney and U.S. prosecutors believe he was highly cooperative during the investigation. Singh expressed deep remorse for his past actions in court, stating that he feels a heavy sense of social debt. U.S. prosecutors asserted that Singh’s candor and cooperation contributed to the case’s resolution, noting that he self-disclosed unrecorded conversations in his testimony, reflecting his determination to “restore the truth.”
Attorney emphasizes that Singh is not the mastermind, with SBF and Ellison as the main decision-makers
Singh’s attorney argued in court that almost all criminal activities involving the misappropriation of customer funds occurred before Singh joined FTX, with SBF and Ellison being the primary decision-makers. The attorney further emphasized that these criminal actions were SBF’s “personal conduct,” and not Singh’s responsibility.
Multiple former FTX executives assist in the investigation, Singh receives three years of probation
Currently, several former high-ranking officials in the FTX bankruptcy case, including Singh, Ellison, Gary Wang, and Ryan Salame, have cooperated with U.S. prosecutors. Ellison was sentenced to two years in September, while Wang is set to receive his sentence on November 20. Former co-CEO of FTX, Ryan Salame, was also imprisoned on October 11 and will serve seven and a half years. Following this ruling, Singh will accept three years of probation to address his social debt.
