A Fourth FTX Executive Sentenced: Forfeits $11 Billion, But No Prison Time

Former FTX executive Nishad Singh was ordered to forfeit $11 billion, reports CNBC — and is subject to three years of supervised release, making him 'the fourth ex-employee of the collapsed crypto exchange to be punished.'

But while he'd faced a maximum sentence of 75 years, he'll serve no time, according to this report from the Associated Press:

Singh, the company's former engineering director, was sentenced in Manhattan by Judge Lewis A. Kaplan, who said his cooperation was 'remarkable.' The judge noted that Singh did not learn of the billions of dollars that were misappropriated from FTX customer accounts and investors until two months before the fraud unraveled... Singh, 29, testified a year ago at Bankman-Fried's trial, saying he was 'blindsided and horrified' when he saw the extent of the fraud behind the once-celebrated and seemingly pioneering firm. At sentencing, Singh said he was 'overwhelmed with remorse' for his role in the fraud. 'I strayed so far from my values, and words can't express how sorry I am,' he said....

The sentencing came a month after Caroline Ellison, another key witness at Bankman-Fried's trial and a former top executive in his cryptocurrency empire, was sentenced to two years in prison. At the time, Kaplan praised her cooperation but said it wasn't a get-out-of-jail-free card. On Wednesday, Kaplan drew a distinction between the cooperation by Ellison and Singh's work with prosecutors, saying Ellison had participated in the fraud 'from the beginning' and had been aware of all the wrongdoing for years... [Defense attorney Andrew Goldstein] said leniency would encourage future cooperators in other criminal cases to come forward.

Assistant U.S. Attorney Nicolas Roos credited Singh with providing information within weeks of the fraud being publicly revealed, saying he helped prosecutors learn about crimes they might otherwise have never discovered, including his own. Roos said, for instance, that Singh told prosecutors about campaign finance violations that occurred as FTX executives made tens of millions of dollars in donations to political candidates. The prosecutor also said Singh revealed private conversations with Bankman-Fried that strengthened the government's case and enabled it to bring charges more quickly against multiple people. Singh gave prosecutors 'documentary evidence the government did not have and likely never would have had,' Roos said.

Bankman-Fried, of course, began a 25-year sentence last November. And three weeks ago FTX executive Ryan Salame made an update on his LinkedIn profile. 'I'm happy to share that I'm starting a new position as Inmate at FCI Cumberland!'

'His post quickly went viral,' notes CNN, 'prompting Salame to joke on X: 'Today I learned people still use LinkedIn.'

Read more of this story at Slashdot.