Nishad Singh, the former engineering chief of the now-defunct cryptocurrency exchange FTX, is seeking leniency from a Manhattan federal judge ahead of his sentencing.
Singh’s lawyers, in a memo filed late Wednesday, argued that he should not face prison time, emphasizing his limited role in the collapse of FTX, his immediate cooperation with authorities, and his commitment to leading an exemplary life.
Nishad’s Role in the FTX Collapse
Bloomberg reported, that Singh is among four high-ranking FTX executives who pleaded guilty to criminal offences following a wide-ranging investigation into the exchange’s downfall.
Sam Bankman-Fried, FTX’s co-founder, was sentenced to 25 years in prison. Singh’s attorneys stressed that his circumstances, his swift cooperation with investigators, and his efforts to rebuild his life make his case unique.
Singh was active in FTX’s operations, but compared to other top executives, his contribution to the company’s collapse was negligible, according to the filing Singh’s attorneys made. The document claims that Singh promptly gave investigators crucial information that enabled them to piece together the intricate chain of events that ultimately resulted in the company’s bankruptcy.
“His circumstances are extraordinary in every way that matters to sentencing,” the lawyers wrote, underscoring Singh’s personal history and the speed with which he responded to FTX’s collapse. Since then, Singh has made efforts to turn his life around, which his legal team argues should be taken into account during sentencing.
FTX’s Bankruptcy Plan Moves Forward
A separate event occurred earlier this month, the court approved FTX’s bankruptcy plan. Judge John Dorsey of the United States Bankruptcy Court approved the proposal, which will allow FTX to use up to $16.5 billion in assets recovered to reimburse customers. The Wilmington, Delaware, court hearing was a crucial stage in the cryptocurrency exchange’s wind-down procedure.
Judge Dorsey praised FTX’s bankruptcy case, citing the volume of assets involved and the complexity of cryptocurrency markets as a model for managing sophisticated Chapter 11 proceedings. With FTX recovering significant assets, there is optimism that consumers who lost money at the collapse of the exchange will have their money back in full.
The approval of FTX’s bankruptcy wind-down plan sets a precedent for other large-scale collapses in the crypto space. With $16.5 billion in assets recovered, FTX’s ability to repay customers has been a rare success story amidst the turmoil that rocked the cryptocurrency industry over the past year.
As Singh awaits his sentencing, his legal team is hopeful that the judge will recognize his limited involvement in FTX’s collapse and his immediate efforts to cooperate with authorities. While others involved in the FTX scandal, like Bankman-Fried and his girlfriend, have faced harsher consequences, Singh’s lawyers are pushing for leniency based on his personal and professional circumstances.