Federal prosecutors have asked the court to recognize former FTX executive Nishad Singh for his significant cooperation during the investigation into the collapse of the crypto exchange. This was highlighted in a court filing dated October 23.
Singh’s Cooperative Efforts
The prosecution emphasized that Singh engaged with authorities out of genuine regret and a strong desire to provide assistance. His valuable cooperation was instrumental in exposing how FTX’s infrastructure facilitated misappropriation of customer funds.
Disclosure of Key Information
According to the prosecutors, Singh’s cooperation extended to revealing crucial details regarding Sam Bankman-Fried’s involvement in transactions related to misappropriated funds. Additionally, Singh brought to light illegal activities previously unknown to the investigators, including:
- The involvement of Ryan Salame and Bankman-Fried in one of the largest campaign finance violations.
- How Bankman-Fried created falsified financial statements, portraying FTX as more profitable than reality.
Implications for Singh’s Sentencing
Due to Singh’s cooperation, the prosecutors are advocating for a more lenient sentence under Section 5K1.1 of the US Sentencing Guidelines. This provision allows for a sentence reduction based on substantial assistance in investigating or prosecuting others involved in criminal conduct.
“The nature, extent, and significance of assistance can involve a broad spectrum of conduct that must be evaluated by the court on an individual basis. Latitude is, therefore, afforded the sentencing judge to reduce a sentence based upon variable relevant factors.”
Given this section, Singh may receive a lighter sentence compared to other FTX executives, such as Salame, Caroline Ellison, and Bankman-Fried, who are facing significant prison time.
Request for Sentencing Considerations
Singh’s legal team has even requested a “time served” sentence, arguing that his role in FTX’s downfall was minimal and that he worked to prevent fraudulent activities. His attorneys further noted Singh’s contributions that helped mitigate the fallout for FTX Japan.
Singh is set to be sentenced on October 30.
