- FTX CEO John J. Ray III sent a letter to Judge Lewis Kaplan asking for leniency in the sentencing of former FTX executive Nishad Singh, citing Singh’s valuable cooperation and assistance in FTX’s bankruptcy proceedings.
- Ray stated that Singh has agreed to provide further assistance and cooperation on an ongoing basis, and his knowledge of FTX’s systems and processes makes his continued cooperation crucial for maximizing recovery for creditors.
- Singh is set to be sentenced by Judge Kaplan on Wednesday afternoon, following the recent sentencing of his co-conspirator Caroline Ellison to two years in federal prison.
John Ray III, the current CEO of the collapsed crypto exchange FTX, sent a letter to Judge Lewis Kaplan on Tuesday regarding the imminent sentencing of former FTX executive Nishad Singh. In the letter, Ray described Singh’s “valuable cooperation” with FTX’s ongoing bankruptcy process and implied that Singh’s continued assistance would be important for maximizing creditor recovery.
The last-minute letter appears intended to compel Judge Kaplan to ensure any sentence handed to Singh will not prevent him from voluntarily cooperating with FTX’s bankruptcy team in the future.
SINGH’S ONGOING COOPERATION WITH FTX BANKRUPTCY TEAM
According to Ray, Singh has already provided “valuable assistance and cooperation” to FTX since its collapse. Furthermore, Singh has agreed to provide “further assistance and cooperation on an ongoing and prospective basis.”
Specifically, Ray explained that FTX and Singh are currently negotiating a deal where Singh would agree to testify as needed, provide documents and information, review and clarify documents, locate and retrieve assets, and answer questions from FTX advisors.
Ray characterized Singh’s potential continued cooperation as “crucial” given his extensive knowledge of FTX’s systems, processes, and personal involvement in key events.
PROSECUTORS’ PRAISE FOR SINGH’S COOPERATION
Last week, FTX’s prosecutors sent Judge Kaplan a “5K letter” describing Singh’s “exemplary” cooperation with their investigation, which they gave in exchange for said cooperation. While the letter commended Singh, it did not make any specific sentence recommendations.
In contrast, Ray’s letter explicitly aims to impact Singh’s sentencing by underscoring the value of his ongoing cooperation.
SINGH’S SENTENCING
Singh is scheduled to be sentenced by Judge Kaplan on Wednesday afternoon. Last month, Kaplan sentenced former FTX executive Caroline Ellison to two years in prison for her role in FTX’s collapse.
It remains to be seen whether Ray’s letter urging leniency for Singh based on his continued cooperation will sway Judge Kaplan’s sentencing decision.
