FTX CEO John Ray stated that Nishad Singh’s cooperation in the bankruptcy process is “crucial to maximize recovery” for creditors. Ray became CEO in Nov. 2022.
Former FTX engineering director Nishad Singh, who is set to be sentenced on the afternoon of October 30, has submitted a last-minute letter from the company’s current CEO pledging to offer “further assistance and cooperation” in the company’s bankruptcy case.
Singh’s attorneys filed a sentencing letter from FTX Trading Ltd. CEO John Ray, which detailed the former engineering director’s cooperation in the firm’s Chapter 11 case, in the United States District Court for the Southern District of New York on October 29. FTX CEO claims that shortly after the company filed for bankruptcy, Signh helped the FTX debtors by providing information about the company’s computers, pertinent documents, and assistance in returning Bahamian property that had been bought with company monies.
According to Ray, Singh and the debtors had agreed for Singh to “provide ongoing cooperation,” which might involve him testifying in bankruptcy court and “locating and retrieving assets.”
According to Ray, “the Debtors expect that Mr. Singh’s cooperation will continue to be important to maximize recovery for the creditors given his senior position within FTX before Chapter 11 Cases, his extensive knowledge of FTX’s systems and processes, and his involvement in many key events and transactions.”
Entered a guilty plea to six felonies.
Singh was among the first former FTX officials to plead guilty to criminal charges about his involvement in campaign finance law crimes and the misappropriation of monies between the exchange and Alameda Research. Judge Lewis Kaplan of the Southern District of New York will hear his sentencing hearing on October 30 at 3:00 p.m. ET.
One of the last officials at the exchange to perhaps be sentenced to prison for his part in the company’s demise is the former engineering director of FTX. Possibly the most responsible party for FTX’s demise, former CEO Sam Bankman-Fried was found guilty in 2023 and given a 25-year prison sentence in March 2024.
Ryan Salame, the former co-CEO of FTX Digital Markets, and Caroline Ellison, the former CEO of Alameda, received sentences of two and seven-and-a-half years, respectively. On November 20, Gary Wang, a co-founder of FTX, will be punished following Singh.
It’s unknown if Judge Kaplan will follow sentencing standards and sentence Singh to prison. According to US prosecutors, the former FTX CEO allegedly gave the US “substantial assistance” in its case against Bankman-Fried. Singh’s legal team requested time to be served to him.
