In summary
- Within hours of Nishad Singh’s sentencing, FTX CEO John J. Ray III asked the judge to consider how a prison sentence could interfere with Singh’s ability to continue assisting in bankruptcy proceedings.
- Ray sent a letter to Judge Lewis Kaplan on Tuesday, highlighting Singh’s “valuable” cooperation and suggesting his continued help would be crucial to maximizing creditors’ recoveries.
- Singh is scheduled to be sentenced Wednesday at 3pm ET, at the Manhattan courthouse, where the FTX case has garnered attention for nearly two years.
Hours before former FTX executive Nishad Singh is sentenced for his role in the Cryptocurrency exchange’s historic collapse, the company’s current CEO has asked the judge in the case to consider how a prison sentence could interfere with the ability of Singh to continue assisting in FTX’s bankruptcy proceedings.
John J. Ray III, the seasoned executive who is guiding FTX through Chapter 11 proceedings, sent a letter Tuesday to Judge Lewis Kaplan, court documents shown, about Singh’s impending sentencing.
In the letter, Ray described Singh’s “valuable” cooperation with the FTX bankruptcy process in great detail, and implied that Singh would continue to be extremely helpful to those efforts in the future, provided he is able and willing to provide such assistance. rather than potentially being locked up in prison like some of his former colleagues.
“Mr. Singh has provided the debtors with valuable assistance and cooperation,” Ray wrote. “Mr. Singh has also agreed to provide further assistance and cooperation on an ongoing and prospective basis.”
“Debtors expect that their cooperation will continue to be important to maximize creditor recovery,” Ray added.
The last-minute call to Kaplan appears intended to force the judge to ensure that whatever sentence he hands down to Singh on Wednesday afternoon, it is not so severe as to prevent the young cryptocurrency executive from voluntarily cooperating with the FTX bankruptcy team.
Ray explained that debtors FTX and Singh are in the midst of negotiating a settlement that would see the latter agree to testify as necessary, volunteer documents and information, review and clarify documents, locate and recover assets, and answer questions from counsel for the debtors.
Ray characterized this potential continued level of assistance from Singh as crucial, given Singh’s “extensive experience in FTX’s system and processes” and his “personal involvement in many key events and transactions” as FTX’s former director of engineering.
Prosecutors in the FTX case, who agreed to send what is known as a “5K letter” to Judge Kaplan outlining Singh’s cooperation with their investigation in exchange for that cooperation, sent a memo last week. While they praised Singh for his “exemplary” contributions to the case against FTX co-founder and former CEO Sam Bankman-Fried, they did not make any specific suggestions about Singh’s sentencing.
Ray, however, is under no obligation to weigh in on Singh’s fate. Therefore, his letter on Tuesday seems to indicate that the executive is trying to influence the 29-year-old’s sentence, one way or another.
Singh is scheduled to be sentenced by Judge Kaplan today at 3pm ET, in the Manhattan courthouse where the FTX case has garnered attention for nearly two years. Last month, Kaplan sentenced Singh’s co-conspirator-turned-cooperator, Caroline Ellison, to two years in federal prison.
Edited by Andrew Hayward
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