On October 31, a significant ruling emerged from the New York federal court, where Judge Lewis A. Kaplan decided to spare former FTX engineering director Nishad Singh from imprisonment in connection with the massive fraud perpetrated by the now-defunct cryptocurrency exchange FTX. As a crucial witness, Singh’s testimony was instrumental in securing the conviction of Sam Bankman-Fried (SBF), the founder of FTX. Singh’s defense contended that he was not part of the central conspiracy, contrasting his actions with those of co-defendants Gary Wang and Caroline Ellison.
It was noted that Singh first became aware in September 2022, just prior to FTX’s downfall, about Alameda Research’s misappropriation of billions in client funds. Judge Kaplan acknowledged this distinction in their respective situations, highlighting Singh’s cooperation as deserving of leniency. Additionally, Singh agreed to forfeit his real estate holdings in Washington state, shares in Anthropic PBC, and other crypto holdings. Meanwhile, FTX co-founder Gary Wang is set to receive sentencing on November 20, concluding the legal proceedings for the U.S. government’s primary cooperating witnesses.