In a significant ruling, Nishad Singh, former chief engineer at the now-defunct cryptocurrency exchange FTX, was spared prison time despite his involvement in one of the most significant financial frauds in U.S. history.
Singh, who shared a luxurious $35 million Bahamas penthouse with FTX founder Sam Bankman-Fried, was credited by U.S. District Judge Lewis Kaplan for his cooperation with prosecutors, leading to a sentence of three years' supervised release.
Singh expressed deep remorse during a Manhattan federal court hearing, acknowledging the harm caused to countless FTX investors. Citing his cooperation, which included testifying against Bankman-Fried, who now serves a lengthy prison sentence, the prosecution urged leniency. Judge Kaplan, noting Singh's lesser involvement compared to other key figures like Caroline Ellison, emphasized Singh's contribution in unveiling the scheme's mechanics.
The case is a testament to the complexities of corporate fraud, with Singh playing a critical role by admitting his part and offering invaluable inside details that further implicate Bankman-Fried and others. His defense stressed Singh's late awareness and minor role in the crime that saw billions in customer funds diverted to cover losses at Alameda Research, FTX's sister hedge fund. (With inputs from agencies.
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