FTX’s current CEO, John Ray, is advocating for the former engineering director, Nishad Singh, to possibly skirt jail time so he can assist further in the firm’s ongoing bankruptcy proceedings. Ray has voiced that Singh’s involvement is crucial to maximize recovery for creditors, given his technical knowledge and previous high-ranking role within FTX.
Singh, set to be sentenced on October 30, received support in the form of a letter from Ray. The document, submitted to court barely a day before the sentencing, details Singh’s valuable cooperation in the firm’s bankruptcy case thus far. It was outlined that he delivered important information about the firm’s computers and provided pertinent documents immediately after the firm declared bankruptcy.
Negotiations for an agreement are ongoing, where Singh might continue to cooperate and aid in tasks such as testifying in bankruptcy court and helping locate and retrieve assets. Ray justified this course of action by citing Singh’s in-depth knowledge of the firm’s systems and his role in key company transactions and occurrences.
Earlier, Singh pleaded guilty to criminal charges relating to misuse of funds between the exchange and Alameda Research, and violations of campaign finance laws. He’s among the last of FTX executives who might face time behind bars for contributing to the company’s downfall. A few others, including former CEO Sam Bankman-Fried, have already been sentenced.
As the hearing approaches, it remains to be seen if Judge Kaplan will follow sentencing guidelines based on Singh’s substantial assistance to the government in the case against Bankman-Fried. His legal team has requested leniency with a sentence of time served.