Last updated on November 11th, 2024 at 11:01 am
Nishad Singh, the former engineering director of FTX, has formally requested leniency from a U.S. federal judge in Manhattan. Before getting a chance to face sentencing for his contribution towards the crash of this cryptocurrency exchange, Singh’s lawyers submitted a memorandum on October 16 to prove that his involvement in the company’s collapse was minimal. They emphasized his cooperation with federal authorities and his commitment to living a responsible life moving forward, hoping these factors would reduce the sentence.
This plea comes amid similar pleas previously made by other former FTX executives. The former chief of Alameda Research, Caroline Ellison, also asked for a softer punishment after being very tactful to the investigators. Ellison was instrumental in revealing the wrongdoing with FTX and Alameda brokerage firm. Cooperation did not save her, as she was arrested in September 2024 and sent to prison for two years. FTX founder Sam Bankman-Fried, imprisoned for 25 years, was extradited thanks to Ellison’s efforts.
Also Read: FTX Secures Court Approval for Bankruptcy Plan, Prioritizes Customer Repayment
Ryan Salame Surrender and Continued Legal Fallout
On October 11, 2024, another former FTX executive, Ryan Salame, was also arrested and served 90 months in prison before the arrest. Salame has offered to stipulate a conviction on money transmission and campaign finance offenses. Among them, his appeal to be allowed to postpone the execution of the sentence because of health issues was turned down. Salame’s indictment continues to expand a list of FTX associates who have found themselves in legal trouble after the company’s failure.
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As the legal battle drags on for these former executives, there is good news for FTX users. According to the write-up, an approved plan for the FTX estate will enable the repayment of $16 billion owed to users. People with claims below $50,000 will receive a single payment between January and March 2025, while the combined residual claims will be distributed in the subsequent portions throughout the year. This repayment plan gives direction toward healing to the investors affected by FTX’s downfall.
Also Read: Coinbase’s Legal Chief Criticizes SEC’s Ambiguity on FTX Repayment Plan
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.