What to expect at Nishad Singh’s sentencing hearing

As a seasoned crypto investor who has weathered numerous market storms and witnessed the rise and fall of several exchanges, I can’t help but feel a mix of emotions as I follow the unfolding drama surrounding FTX. The sentencing of Nishad Singh, former engineering director at FTX, is a reminder that justice might be slow, but it does catch up eventually.

On October 30, nearly two years since the crytpo exchange FTX faced a liquidity issue leading to bankruptcy filing, the ex-engineering director Nishad Singh is set to appear before a court in New York to receive sentencing for his offenses.

Following the 2022 collapse of FTX, U.S. prosecutors accused Singh and four other associates of various offenses such as fraud and illegal campaign financing.

Previously serving as CEO of FTX, Sam Bankman-Fried – who had been the exchange’s public representative and reportedly most responsible for its collapse – went on trial after pleading not guilty. Subsequently, he was handed a 25-year prison sentence, marking him as the first individual to bear the consequences of his actions in this case.

Nevertheless, it took several months for the court to respond to the guilty pleas from Singh, ex-CEO of Alameda Research Caroline Ellison, FTX co-founder Gary Wang, and Ryan Salame, former co-CEO of FTX Digital Markets — the exchange’s Bahamian branch. All except Salame eventually confessed and testified during Bankman-Fried’s criminal trial.

In September, a judge ordered Ellison, one of the highest-profile defendants mentioned in the indictment, to serve two years in prison, with her due date for reporting to the prison set for November. Salame, who received a sentence of 90 months, initially attempted to withdraw his guilty plea but reported to a federal penitentiary on October 11th.

Prison or time served?

As the analyst here, I’m examining the situation where Singh and Wang stand as the last two pieces in a series of criminal cases related to executives at FTX and Alameda. The question remains ambiguous about how a judge will evaluate their collaboration with prosecutors when determining sentencing guidelines.

Previously holding the position of engineering director at FTX, the individual admitted guilt for conspiring to carry out wire fraud, as well as actual wire fraud, conspiracies to commit commodities fraud, securities fraud, money laundering, and making illegal political contributions.

Prior to Ellison’s trial for sentencing, prosecutors pointed out her “exceptional assistance” in bringing about the conviction of Bankman-Fried, a man she had a brief relationship with. The court document further explained that the former CEO was under extensive media scrutiny, including an incident where one news source published her personal journals following Bankman-Fried’s disclosure. Despite this cooperation, Judge Lewis Kaplan handed down a two-year prison sentence for Ellison.

Similar to Ellison, Singh’s legal team has proposed that the ex-FTX engineering director be granted a sentence equivalent to the time already served. The prosecution did not specify any particular prison term but urged the judge to take into account his role in aiding the government during Bankman-Fried’s trial, particularly in helping them uncover crucial evidence.

In simpler terms, Mark Bini, an ex-assistant U.S. attorney from the Eastern District of New York, stated to CryptoMoon that they are strongly advocating for a reduction in Singh’s sentence, but they aren’t certain if his help was as significant as Ellison’s. His lawyers have presented arguments suggesting that Singh is less responsible for the offenses.

Bini thought it was likely that Singh might serve approximately three years in prison, considering the distinct aspects of his case compared to those of the previous Alameda CEO.

“I think [Singh] is going to get a little bit more [time] than Caroline Ellison […] Ellison was really in the misappropriation crime — she knew about that — while as Singh, while he may have had less knowledge of the misappropriation crime, he also knew about this campaign finance violation.”

Pending cases with crypto execs

Wang, who admitted guilt for fraudulent activities (but not for breaching campaign finance laws), has a scheduled court appearance on November 20th for his sentencing hearing. As of now, no sentencing memorandum has been submitted by his legal team in the U.S. District Court for the Southern District of New York.

As a crypto investor, I find myself closely following the case of Sam Bankman-Fried, who is currently serving time in a New York facility. Despite this, he’s still actively involved in his defense, particularly during the appeal process scheduled for September. His legal team has argued that at his trial, Bankman-Fried was not given the presumption of innocence, which they believe played a significant role in his conviction and sentencing.

Previously arrested Celsius CEO Alex Mashinsky, who faced questions about potential conflicts with his lawyers back in February, has another court date scheduled on November 13th. The start of his actual trial, which pertains to criminal charges, is planned for January 2025.

2024-10-25 19:02

Prison or time served?

Pending cases with crypto execs

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