Nishad Singh, the former engineering director at FTX, faces sentencing on October 30. His defense team is advocating for no jail time, emphasizing his cooperation and limited involvement in the exchange’s downfall.
Singh’s Defense: A Limited Role in FTX’s Collapse
Nishad Singh’s attorneys argue that his role in the collapse of FTX was much smaller compared to other key players. In a court filing submitted on Wednesday, his lawyers stated that Singh’s circumstances are “extraordinary in every way that matters to sentencing” and should result in no jail time. They stressed that Singh was “situated differently” from other executives and highlighted his character as an “uncommonly selfless individual.”
To bolster their case, Singh’s legal team submitted over 100 letters from friends, colleagues, and family, all attesting to his character and limited role in the downfall of FTX.
Guilty Plea and Cooperation with Investigators
In February 2023, Singh pleaded guilty to six criminal charges, including fraud and conspiracy to commit money laundering. Despite the severity of the charges, his defense pointed out that Singh’s role in the broader FTX conspiracy was minor, and he has since cooperated with investigators. Notably, Singh testified against FTX founder Sam Bankman-Fried in October 2023, further aiding the prosecution.
His lawyers acknowledged Singh’s wrongdoing, stating, “He does not minimize his conduct; he pled guilty to serious crimes at the outset of this case.” However, they argued that his involvement was far more limited compared to other defendants.
Emotional Apology from Singh
In a letter to the judge, Singh expressed deep remorse for his actions, writing, “I am deeply sorry to the people I hurt. The enormity of the harm I have caused and taken part in overwhelms me.” He admitted to being manipulated by Bankman-Fried’s narratives but also acknowledged his own choices in contributing to the wrongdoing.
Singh’s attorneys also noted that he did not join the conspiracy until September 2022, just two months before FTX’s collapse. According to the defense, key decisions leading to the misuse of billions in customer funds were made by Bankman-Fried and Alameda Co-CEO Caroline Ellison long before Singh’s involvement. His participation, they claim, was “almost entirely passive.”
Distinguishing Singh from Ellison and Bankman-Fried
Singh’s defense team argued that his case is distinct from others involved in FTX’s collapse. In March 2024, Sam Bankman-Fried was sentenced to 25 years in prison for multiple counts of fraud and conspiracy. Last month, Caroline Ellison received a two-year sentence for her role in the exchange’s downfall. However, Singh’s lawyers pointed out that Ellison’s actions were more severe and directly involved in the misuse of customer funds, whereas Singh’s involvement was minimal.
Ellison’s sentencing, they noted, was partly meant to send a message that cooperation does not guarantee leniency. Singh’s defense maintains that this message is unnecessary in his case due to his far more limited role in the charged offenses.
Cooperation and Separation from Bankman-Fried
Singh’s defense emphasized his cooperation during the investigation. As customers began withdrawing funds from FTX amid its collapse, Singh distanced himself from Bankman-Fried and others who were issuing misleading public statements to prevent withdrawals. His lawyers highlighted this as further evidence of his limited role in the scandal.
Final Sentencing Approaches
With the sentencing date approaching, Singh’s legal team hopes that the court will consider his cooperation, limited involvement, and personal remorse in determining an appropriate sentence. Whether the court will grant their request for no jail time remains to be seen.
