Former cryptocurrency executive Nishad Singh, who once shared a penthouse with FTX founder Sam Bankman-Fried, has been spared prison time for his role in the theft of $8 billion in customer funds from the now-bankrupt exchange. United States District Judge Lewis Kaplan imposed three years of supervised release, crediting Singh for cooperation in exposing the fraud.
Singh, who pleaded guilty to fraud and conspiracy, testified against Bankman-Fried, admitting to serving as a “straw donor” in political donations. Prosecutors recommended leniency for Singh due to his cooperation, in contrast to Bankman-Fried’s 25-year prison sentence and Caroline Ellison’s two-year sentence for their roles in the crime.
During the hearing, Singh expressed remorse for his actions, acknowledging his deviation from his values. He revealed Bankman-Fried’s deception, sharing conversations that were not documented, and taking responsibility for his involvement in the fraudulent scheme.
Singh’s lawyer argued that the majority of the crime took place before Singh’s involvement, with Bankman-Fried and Ellison making the decisions to steal funds. Singh, who lived with Bankman-Fried in a Bahamas penthouse and had a temporary billionaire status during the cryptocurrency boom, is focused on making amends with society.
Bankman-Fried, appealing his conviction, and another former FTX executive, Gary Wang, facing sentencing, continue to deal with the aftermath of the financial fraud that rocked the cryptocurrency world. Singh’s willingness to come forward and cooperate with prosecutors, despite the personal toll it took on him, indicates a step towards accountability and justice in this high-profile case.
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