Outside Source
John Ray, who took over as FTX CEO in November 2022, suggested Nishad Singh’s cooperation in the firm’s bankruptcy would be “important to maximize recovery” for creditors.
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Scheduled to be sentenced on the afternoon of Oct. 30, former FTX engineering director Nishad Singh has submitted an eleventh-hour letter from the company’s current CEO, who said he would provide “further assistance and cooperation” in the firm’s bankruptcy case.
In an Oct. 29 filing in the United States District Court for the Southern District of New York, Singh’s lawyers filed a sentencing letter from FTX Trading Ltd. CEO John Ray detailing the former engineering director’s assistance in the firm’s Chapter 11 case. According to the FTX CEO, Signh assisted the FTX debtors with information about the firm’s computers shortly after the firm filed for bankruptcy, provided relevant documents, and helped return Bahamian property purchased with company funds.
Source: SDNY
Ray said there was a deal in the works between Singh and the debtors for the former FTX engineering director to “provide ongoing cooperation” that could include him testifying in bankruptcy court and “locating and retrieving assets.”
“Given Mr. Singh’s senior position within FTX prior to Chapter 11 Cases, his extensive knowledge of FTX’s systems and processes, and his personal involvement in many key events and transactions, the Debtors expect that his cooperation will continue to be important to maximize recovery for the creditors,” said Ray.
Pleaded guilty to six felony charges
Singh was one of the first former FTX executives to plead guilty to criminal charges related to his role in the misuse of funds between the exchange and Alameda Research, as well as campaign finance law violations. His sentencing hearing is scheduled before Judge Lewis Kaplan of the Southern District of New York at 3:00 pm ET on Oct. 30.
Related: What to expect at Nishad Singh’s sentencing hearing
The former FTX engineering director is one of the last executives at the exchange to potentially face prison time for his role in the company’s collapse. Former CEO Sam Bankman-Fried — arguably the most culpable in FTX’s downfall — was convicted in 2023 and sentenced to 25 years in prison in March 2024.
Former Alameda CEO Caroline Ellison and former FTX Digital Markets co-CEO Ryan Salame were sentenced to two and seven-and-a-half years, respectively. Gary Wang, an FTX co-founder, is scheduled to be sentenced after Singh on Nov. 20.
It’s unclear whether Judge Kaplan will decide to send Singh to prison based on sentencing guidelines. US prosecutors said the former FTX executive provided “substantial assistance” to the government in its case against Bankman-Fried. Singh’s legal team asked he be given time served.
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This article first appeared at Cointelegraph.com News
