Nishad Singh, once the lead engineer steering the backend currents of the FTX crypto exchange, emerged from court Wednesday with an unexpectedly light sentence. A close confidante of FTX’s founder, Sam Bankman-Fried, Singh faced a short-lived prison stay—earning only time served and a three-year supervised release for his cooperation in the massive FTX saga.
The sentence stands in stark contrast to Bankman-Fried’s 25-year prison term, which landed like a thunderclap in the crypto community. Singh’s detailed cooperation, a saving grace in this murky case, ended up being his legal lifeline. So, with the scales of justice favoring him, Singh is now free.
Judge Recognizes Singh’s Loyalty in Recovering Assets
In an unusual twist for courtroom drama, FTX’s current CEO, John J. Ray III, went to bat for Singh with a heartfelt letter late Tuesday. Known for his work in major bankruptcies, Ray argued for Singh’s ongoing importance in unearthing and securing the remains of FTX’s assets. “His knowledge of the system is extensive,” Ray wrote, “and his involvement in critical events invaluable to our recovery process.”
Singh’s engineering knowledge proved indispensable to Ray, who continues to wade through the chaotic aftermath of FTX’s collapse. But the decision ultimately lay with Judge Lewis Kaplan, who hailed Singh’s “remarkable” assistance. “You did the right thing, quickly,” Judge Kaplan remarked, giving Singh credit for turning against his former colleagues. “Caroline Ellison got credit, but you deserve more.” The comparison to Ellison—who received two years for her part in the FTX debacle—struck a chord with onlookers, showing the value of Singh’s contribution.
From Crypto Engineer to Whistleblower
Singh’s days in the crypto trenches started back in 2017 when he joined Alameda Research, a sister firm to FTX. Within just two years, he moved into the ranks of FTX’s founding engineers, navigating the architecture of one of crypto’s most powerful exchanges. But as FTX’s foundations crumbled in late 2022, Singh shifted gears, handing over evidence against the once-unassailable Bankman-Fried. Prosecutors were vocal, labeling Singh’s assistance as “exemplary,” crediting him for critical evidence that buttressed the fraud case.
Now far from FTX’s turmoil, Singh has relocated to San Francisco, where he reportedly works in artificial intelligence. He shares a new life there with fiancée Claire Watanabe, herself a former FTX employee, signaling a clear departure from the crypto world that both empowered and nearly entrapped him.
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