Former FTX head of engineering, Nishad Singh, has requested a Manhattan federal judge to exempt him from a prison sentence for his involvement in the collapse of the cryptocurrency exchange platform.

Defense for Nishad Singh

Lawyers representing Nishad Singh filed a memo on Oct. 16, arguing that Singh deserved a lighter sentence due to his limited role in FTX’s collapse and his commitment to leading an exemplary life. They emphasized Singh’s cooperation in the investigation and his efforts to rebuild his life as sufficient grounds for leniency.

Singh is the fourth FTX executive to be indicted for his role in the crypto exchange’s downfall. The filing described him as an “uncommonly selfless individual” and included over 100 letters from family, friends, and former colleagues attesting to his character.

“His personal history and characteristics, his role in the charged offenses, the speed with which he cooperated, his response to the collapse of FTX, and how he has rebuilt his life since then,” stated the attorneys.

Upcoming Sentencing and Potential Consequences

Singh is scheduled to be sentenced on Oct. 30. Meanwhile, former FTX chief of technology Gary Wang will receive his sentence on Nov. 20. Singh could face up to 75 years in prison for his involvement in defrauding users of the crypto exchange.

Previous Legal Actions

In February 2023, Singh pleaded guilty to six criminal charges, including wire fraud, conspiracy to commit money laundering, three counts of conspiracy to commit fraud, and conspiracy to defraud the United States by violating campaign finance laws.

In October 2023, Singh testified against former CEO Sam Bankman-Fried as part of his cooperation agreement with the government. Singh, a former Alameda and FTX developer, developed software code that facilitated the transfer of FTX customer funds to Alameda Research.

SEC Allegations

According to the Securities and Exchange Commission, Singh actively participated in deceiving investors and withdrawing around $6 million from the company for personal use as the exchange neared its collapse.

Sentences of Other Executives

In March 2024, Bankman-Fried was sentenced to 25 years in prison after being found guilty on seven different fraud and conspiracy charges. Caroline Ellison, CEO of Alameda Research, received a two-year sentence last month after pleading guilty to similar charges. Ryan Salame, CEO of FTX Digital Markets, began a 7.5-year prison sentence earlier this month.

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