FTX CEO urges leniency for Singh to aid bankruptcy case

John Ray, CEO of FTX (CRYPTO:FTT), has urged the U.S. District Court for the Southern District of New York to allow Nishad Singh, former engineering director of the crypto exchange, to remain free amid ongoing bankruptcy proceedings.

In an October 29 letter to the court, Ray detailed Singh’s cooperation in FTX’s Chapter 11 case, highlighting Singh’s contributions in providing information about the company’s systems, supplying documentation, and helping recover Bahamian properties acquired with company funds.

Ray stated, “Given Mr. Singh’s senior position within FTX prior to Chapter 11 Cases, his extensive knowledge of FTX’s systems and processes, and his personal involvement in many key events and transactions, the Debtors expect that his cooperation will continue to be important to maximize recovery for the creditors.”

Singh is scheduled for sentencing on October 30 after pleading guilty to six felony charges related to fund mismanagement between FTX and Alameda Research.

Despite the charges, Ray’s letter emphasises that Singh’s assistance remains crucial to recovering assets for creditors.

Since the exchange’s collapse, Singh has cooperated with authorities.

His sentencing will be overseen by Judge Lewis Kaplan, who may consider Singh’s contributions when deciding his penalty.

U.S. prosecutors have described Singh’s cooperation as “substantial assistance” in building the case against former FTX CEO Sam Bankman-Fried.

Singh is among the final executives to face sentencing following the collapse.

Other figures, including Caroline Ellison, Ryan Salame, and Gary Wang, have already received their sentences.

Singh’s legal team has requested a more lenient sentence, citing his cooperation.

The court’s decision could impact FTX’s ongoing efforts to recover assets for its creditors as the proceedings continue.

At the time of writing, the Bitcoin price was $72,119.73.