Nishad Singh, the former director of engineering at FTX, is appealing to a Manhattan federal judge for leniency regarding his sentencing, scheduled for 30 October 2024.
His legal team has emphasised his unique circumstances, asserting that his role in the cryptocurrency exchange's collapse was significantly less impactful than that of other former executives.
They describe him as an "uncommonly selfless individual," advocating for his character and the support he has received from friends, family, and colleagues, submitting over 100 letters attesting to his positive qualities.
Singh's attorneys argue that he should not be subjected to a prison sentence due to the extraordinary nature of his situation.
Nishad Singh, the former director of engineering at FTX
They stress that his involvement was "far more limited" compared to other defendants in the case.
"Put simply, his role was far more limited than any other defendant," his lawyers noted in their filing.
They assert that Singh did not minimise his actions, acknowledging his guilty plea to serious charges.
Singh's cooperation with investigations has been a crucial aspect of his case, as he has provided testimony against Sam Bankman-Fried, FTX's co-founder, highlighting his commitment to accountability.
In his own heartfelt letter to the judge, Singh expressed profound remorse, stating,
“I feel overwhelmed and my gut clenches when I try to think about the enormity of the harm I have caused and taken part in.”
He reflected on the manipulation he witnessed from Bankman-Fried, admitting,
“I chose to see things that were wrong as expedient or justified and things that were risky as bold.”
This acknowledgment of his misguided decisions indicates a level of introspection that his attorneys hope will influence the court's decision.
The filing from Singh's lawyers highlights that he joined the alleged conspiracy only in September 2022, just months before FTX's downfall, after major decisions were already made regarding the misuse of customer funds by Bankman-Fried and Caroline Ellison, Alameda's co-CEO.
They contended,
"Nishad was not part of that conduct. His role was almost entirely passive.”
This argument suggests that Singh's involvement did not reach the level of culpability seen in other key figures associated with the exchange's dramatic decline.
Singh's attorneys also pointed out his attempts to distance himself from Bankman-Fried and other executives as FTX's crisis unfolded.
L-R: Caroline Ellison and Bankman-Fried
When customers began to withdraw their funds, he separated from the misleading public statements that were intended to deter withdrawals.
This further emphasises Singh's purported awareness of the unethical practices occurring within the company.
The collapse of FTX was intricately linked to Alameda Research, both entities founded by Bankman-Fried.
Alameda acted as FTX’s primary market maker, managing liquidity and raising alarms about potential conflicts of interest and mismanagement of customer funds.
Following the FTX crisis, Bankman-Fried received a 25-year prison sentence in March 2024 after being convicted on seven counts of fraud and conspiracy.
Ellison, for her involvement, was sentenced to two years last month.
Ryan Salame, Co-CEO of FTX Digital Markets (Bahamian subsidiary of FTX), received a 7.5-year prison sentence after pleading guilty to conspiracy to make illegal political contributions and operating an unlicensed money transfer business, along with a $1.5 billion fine.
Singh is now navigating the court's considerations of his actions and the overall context of the collapse.
His lawyers have urged the judge to recognise the differences between Singh's conduct and that of others like Ellison and Bankman-Fried, who faced harsher sentences due to their more extensive roles in the fraudulent activities.
They argued,
“That message is unnecessary in fashioning an appropriate sentence for Nishad. Nishad’s situation is different first and foremost because of his far more limited role in the charged offences.”
Singh's upcoming sentencing will ultimately determine whether his claims of limited involvement and genuine remorse will be enough to spare him from a lengthy prison term.
As one of the FTX figures to plead guilty, his fate remains uncertain amid the larger narrative of accountability surrounding the cryptocurrency exchange's downfall.
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