Bankman-Fried's ex-deputy Singh to be sentenced over crypto fraud

By Luc Cohen

NEW YORK (Reuters) – Former cryptocurrency government Nishad Singh is about to be sentenced on Wednesday for his position in his imprisoned former boss Sam Bankman-Fried’s theft of about $8 billion in buyer funds from the now-bankrupt FTX change.

Singh, who has pleaded responsible to 6 felony counts of fraud and conspiracy, testified final 12 months as a prosecution witness within the trial that led to Bankman-Fried’s conviction on fraud and different expenses. Singh in a plea take care of prosecutors admitted to his position in what they’ve known as one of many largest monetary frauds in U.S. historical past and for performing as a “straw donor” in a few of Bankman-Fried’s hundreds of thousands of {dollars} in political donations. 

Bankman-Fried, 32, is serving a 25-year jail sentence on the Metropolitan Detention Middle in Brooklyn stemming from the November 2022 collapse of the FTX change he based. 

Singh, 29, is FTX’s former chief engineer. He’s anticipated to obtain a far lesser sentence from U.S. District Choose Lewis Kaplan throughout a listening to scheduled for 3 p.m. ET (1900 GMT) in federal courtroom in Manhattan. Prosecutors urged leniency whereas Singh’s attorneys beneficial that he serve no jail time. 

“Singh supplied substantial help to the federal government in its investigation and prosecution of wrongdoers, and in its restoration of property for victims,” the U.S. lawyer’s workplace in Manhattan wrote in an Oct. 23 courtroom submitting. 

Kaplan final month sentenced Caroline Ellison, Bankman-Fried’s former girlfriend and an government at FTX’s sister hedge fund Alameda Analysis, to 2 years in jail. The choose praised her cooperation, however stated that such help couldn’t be a “get out of jail free card” in a case as critical as this one. 

Singh’s attorneys wrote in an Oct. 16 courtroom submitting that he joined the conspiracy comparatively late, after Bankman-Fried and Ellison had already determined to make use of billions of {dollars} of FTX buyer funds to plug losses at Alameda. 

Bankman-Fried rode a growth in cryptocurrency costs in the course of the COVID pandemic to a web price by October 2021 of, in accordance with Forbes journal, $26 billion. He gained prominence as a prolific donor to philanthropic causes and Democratic politicians.

His wealth evaporated when FTX collapsed amid a flurry of buyer withdrawals. 

Singh testified in the course of the trial that he confronted Bankman-Fried a couple of large shortfall of buyer funds throughout an hourlong dialog held in September 2022 on the balcony of a $35 million Bahamas penthouse they shared. Singh stated Bankman-Fried assured him he would increase extra funds and lower prices. 

Bankman-Fried is interesting his conviction and sentence, arguing that Kaplan wrongly excluded proof exhibiting he thought FTX had sufficient funds to cowl buyer withdrawals.

Gary Wang, a 3rd former FTX government who cooperated with prosecutors, is scheduled to be sentenced on Nov. 20.