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FTX executive Nishad Singh avoids prison sentence by cooperating with authorities | Crypto News


Former cryptocurrency executive Nishad Singh, who cooperated with prosecutors in the case involving the theft of $8 billion in customer funds by his former boss, FTX founder Sam Bankman-Fried, has been spared prison time. United States District Judge Lewis Kaplan credited Singh for his cooperation and remorse, imposing three years of supervised release instead.

Singh pleaded guilty to fraud and conspiracy charges, admitting his role in the fraud and serving as a “straw donor” for Bankman-Fried’s political donations. He testified against Bankman-Fried, who was convicted and sentenced to 25 years in prison for FTX’s collapse.

Singh’s lawyer argued that the majority of the fraud occurred before his client was involved, placing responsibility on Bankman-Fried and another executive, Caroline Ellison. Singh’s cooperation was praised by the prosecutor for coming forward and detailing conversations not otherwise documented.

Singh, who shared a penthouse in the Bahamas with Bankman-Fried during the cryptocurrency boom, became suicidal as FTX unravelled in 2022, leading to its bankruptcy. He confronted Bankman-Fried about the shortfall of customer funds, but was reassured that funds would be raised and costs cut.

Singh’s involvement was deemed less significant than Bankman-Fried and Ellison’s, leading to the decision to spare him prison time. The judge commended Singh for his cooperation and urged him to continue making amends.

Overall, the case involving Singh, Bankman-Fried, and others highlights the risks and consequences of fraud in the cryptocurrency industry, emphasizing the importance of accountability and cooperation in addressing financial crimes.

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Photo credit www.aljazeera.com

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