FTX’s Indian origin ex-deputy Nishad Singh is set to be sentenced on Wednesday, October 30th. According to a report by Reuters, the sentencing comes as a result of Nishad’s connection and involvement in the theft of approximately $8 billion in customer funds from the now-bankrupt FTX exchange.
Reuters also highlights that, in the trial that resulted in Bankman-Fried’s conviction on fraud and other charges last year, Singh, who has entered a guilty plea to six felony counts of fraud and conspiracy, provided testimony as a prosecution witness.
However, prosecutors have accused Singh of participating in one of the largest financial scams in American history and of serving as a “straw donor” for some of Bankman-Fried’s millions of dollars in political contributions. Singh acknowledged these actions in a plea agreement.
What Was The FTX Fraud?
The owners of the cryptocurrency exchange FTX engaged in a number of financial crimes, including money laundering and customer fund embezzlement, which together constituted the FTX fraud.
Following an increase in customer withdrawals, FTX filed for bankruptcy in November 2022. FTX CEO Sam Bankman-Fried was also given a 25-year prison term and mandated to pay back $11 billion. The FTX scam, according to the prosecution, was one of the largest financial crimes in American history.
Nishad’s Prosecutors Ask For Leniency in Sentencing
Previously, The US Department of Justice had asked for leniency in Nishad’s sentencing. Citing former executive Nishad Singh’s “substantial assistance” and “exemplary cooperation” in the government’s investigation was the base for this demand.
Prosecutors highlighted Singh’s “sincere regret” and readiness to cooperate with authorities in their filing on October 23. His assistance was especially helpful to the government in comprehending the technical details of how FTX’s code was altered to enable the unlawful use of client funds.
Singh played a vital role in exposing the intricate network of financial wrongdoing at FTX, as evidenced by the tracking and documentation of transactions carried out by Sam Bankman-Fried using assets that had been stolen.
Nishad’s Sentencing Stays In Tandem With Other FTX Accused People
As UnoCrypto reported earlier, other significant FTX figures have also been involved in parallel developments in the case, most notably Caroline Ellison, Sam Bankman-Fried’s ex-girlfriend and former CEO of Alameda Research Ltd.
Ellison has consented to a large settlement that entails giving up almost all of her assets and cash to companies connected to FTX Trading Ltd.
The US Bankruptcy Court District of Delaware filed this settlement in order to settle a lawsuit that sought to recoup about $30 million in payments and FTX securities that Ellison had received before the collapse of the exchange.