Prosecutors praise Nishad Singh for key role in FTX investigation

Nishad Singh, former FTX executive, has been recognized by government prosecutors for his role in helping the investigation into the collapse of the crypto exchange.

Singh has provided what prosecutors described as “substantial assistance” and “exemplary cooperation.” They especially emphasized his efforts to expose critical elements of FTX’s inner workings, especially regarding the misuse of customer funds.

Singh’s role in exposing FTX fraud

In a letter , the prosecutors commended Singh’s “earnest remorse” and highlighted his “eagerness to assist.” Singh’s cooperation gave investigators a detailed understanding of how FTX’s code allowed the misuse of customers’ funds and exposed transactions where stolen money was involved.

He also revealed criminal activities that were previously unknown to the government, such as a massive campaign finance scheme led by SBF and Ryan Salame. The letter read:

“In particular, Singh provided important testimony about Bankman-Fried’s mental state in September through November 2022, recounting for the jury in vivid detail his conversations with Bankman-Fried about the theft and use of FTX customers’ funds.”

Reportedly, he was the first to detail how SBF manipulated FTX’s financials, inflating revenues to make the company appear more profitable.

Singh had pled guilty to six criminal charges in February 2023, including fraud and conspiracy related to FTX’s downfall in 2022. Singh’s lawyers have urged the court to spare him a prison sentence.

In an October 16 filing, they described him as an “uncommonly selfless individual” and emphasized his cooperation with authorities. They argued that Singh had a limited role at FTX compared to others involved, including SBF, Caroline Ellison, Salame, and Gary Wang.

Singh’s legal team say he was not involved in any criminal activity until late 2022, well after Bankman-Fried and Ellison decided to misuse billions of dollars of customer funds to support Alameda Research.

Lawyers push for leniency

Singh’s team is also pushing for a sentence of “time served” along with supervised release. They argued that his cooperation with the government sets him apart from other FTX executives.

In his own letter to the court, Singh expressed remorse for his role in misleading investors and causing harm to “countless innocent people.” He admitted to helping SBF falsely claim FTX was profitable and pleaded for leniency.

“I know you have a lot to consider in determining my sentence,” Singh wrote to Judge Lewis Kaplan. “I hope, through my future actions, to prove that I am worthy of any chance you may grant me.”

His lawyers submitted letters from dozens of people supporting his case, further emphasizing that his involvement in FTX’s fraudulent activities was limited.

SBF was sentenced to 25 years in prison in March 2023 after being convicted on seven fraud and conspiracy charges. Caroline Ellison, former CEO of Alameda Research, was sentenced to two years in September 2023 after pleading guilty to the same charges.

Ryan Salame, CEO of FTX Digital Markets, was sentenced to 7.5 years in prison earlier this month for operating an unlicensed money transmitter and conspiring to defraud the Federal Election Commission.