A Fourth FTX Executive Sentenced: Forfeits $11 Billion, But No Prison Time (apnews.com) 50
Former FTX executive Nishad Singh was ordered to forfeit $11 billion, reports CNBC — and is subject to three years of supervised release, making him "the fourth ex-employee of the collapsed crypto exchange to be punished."
But while he'd faced a maximum sentence of 75 years, he'll serve no time, according to this report from the Associated Press: Singh, the company's former engineering director, was sentenced in Manhattan by Judge Lewis A. Kaplan, who said his cooperation was "remarkable." The judge noted that Singh did not learn of the billions of dollars that were misappropriated from FTX customer accounts and investors until two months before the fraud unraveled... Singh, 29, testified a year ago at Bankman-Fried's trial, saying he was "blindsided and horrified" when he saw the extent of the fraud behind the once-celebrated and seemingly pioneering firm. At sentencing, Singh said he was "overwhelmed with remorse" for his role in the fraud. "I strayed so far from my values, and words can't express how sorry I am," he said....
The sentencing came a month after Caroline Ellison, another key witness at Bankman-Fried's trial and a former top executive in his cryptocurrency empire, was sentenced to two years in prison. At the time, Kaplan praised her cooperation but said it wasn't a get-out-of-jail-free card. On Wednesday, Kaplan drew a distinction between the cooperation by Ellison and Singh's work with prosecutors, saying Ellison had participated in the fraud "from the beginning" and had been aware of all the wrongdoing for years... [Defense attorney Andrew Goldstein] said leniency would encourage future cooperators in other criminal cases to come forward.
Assistant U.S. Attorney Nicolas Roos credited Singh with providing information within weeks of the fraud being publicly revealed, saying he helped prosecutors learn about crimes they might otherwise have never discovered, including his own. Roos said, for instance, that Singh told prosecutors about campaign finance violations that occurred as FTX executives made tens of millions of dollars in donations to political candidates. The prosecutor also said Singh revealed private conversations with Bankman-Fried that strengthened the government's case and enabled it to bring charges more quickly against multiple people. Singh gave prosecutors "documentary evidence the government did not have and likely never would have had," Roos said.
Bankman-Fried, of course, began a 25-year sentence last November. And three weeks ago FTX executive Ryan Salame made an update on his LinkedIn profile. "I'm happy to share that I'm starting a new position as Inmate at FCI Cumberland!"
"His post quickly went viral," notes CNN, "prompting Salame to joke on X: "Today I learned people still use LinkedIn."
But while he'd faced a maximum sentence of 75 years, he'll serve no time, according to this report from the Associated Press: Singh, the company's former engineering director, was sentenced in Manhattan by Judge Lewis A. Kaplan, who said his cooperation was "remarkable." The judge noted that Singh did not learn of the billions of dollars that were misappropriated from FTX customer accounts and investors until two months before the fraud unraveled... Singh, 29, testified a year ago at Bankman-Fried's trial, saying he was "blindsided and horrified" when he saw the extent of the fraud behind the once-celebrated and seemingly pioneering firm. At sentencing, Singh said he was "overwhelmed with remorse" for his role in the fraud. "I strayed so far from my values, and words can't express how sorry I am," he said....
The sentencing came a month after Caroline Ellison, another key witness at Bankman-Fried's trial and a former top executive in his cryptocurrency empire, was sentenced to two years in prison. At the time, Kaplan praised her cooperation but said it wasn't a get-out-of-jail-free card. On Wednesday, Kaplan drew a distinction between the cooperation by Ellison and Singh's work with prosecutors, saying Ellison had participated in the fraud "from the beginning" and had been aware of all the wrongdoing for years... [Defense attorney Andrew Goldstein] said leniency would encourage future cooperators in other criminal cases to come forward.
Assistant U.S. Attorney Nicolas Roos credited Singh with providing information within weeks of the fraud being publicly revealed, saying he helped prosecutors learn about crimes they might otherwise have never discovered, including his own. Roos said, for instance, that Singh told prosecutors about campaign finance violations that occurred as FTX executives made tens of millions of dollars in donations to political candidates. The prosecutor also said Singh revealed private conversations with Bankman-Fried that strengthened the government's case and enabled it to bring charges more quickly against multiple people. Singh gave prosecutors "documentary evidence the government did not have and likely never would have had," Roos said.
Bankman-Fried, of course, began a 25-year sentence last November. And three weeks ago FTX executive Ryan Salame made an update on his LinkedIn profile. "I'm happy to share that I'm starting a new position as Inmate at FCI Cumberland!"
"His post quickly went viral," notes CNN, "prompting Salame to joke on X: "Today I learned people still use LinkedIn."
The grand master plan of crypto (Score:1)
The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: create a new form of currency, and
Re:The grand master plan of crypto (Score:5, Informative)
This copy/pasta is getting stale, you plop it down in every thread even vaguely related to the topic.
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If you don’t think shitcoin is ripe for plenty left holding the bag, see what happens when the infamous Satoshi comes out of hiding by way of cashing out.
if you don't think that Bitcoin is a bad idea, the fact that the founder lost the majority of his fortune to a lost wallet should persuade you. If that doesn't, when the next great depression is caused by a senile old Santoshi finding a microSD card with a backup of that wallet, making a mistake on the conversion rate and suddenly putting 10,000 times the normal float of the Bitcoin market up for sale, thinking it will be enough to pay for his old people's home, might finally rid us of this.
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The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: create a new form of currency, and for it a new financial system detached from traditional ones (those burdened by "governments and regulations") - they called it "DeFi" for "Decentralized Finance", but its dirty little secret is that it's really "Deregulated Finance".
And who exactly is behind this master plan? Obviously not the government. Republicans? The Bilderberg Group? The Rothschilds? The illuminati? The new world order? Aliens?
It seems more to me to just be a tool that some hackers cobbled together, and it just kind of took on a life of its own. Not too dissimilar from Linux. Satoshi Nakomoto appears to be more of an accounting guru familiar with various existing types of ledgers and limited engineering background (I didn't read his original code, but most contri
Dude it's just money laundering (Score:1, Flamebait)
It reminds me of an old anime where there was some Yakuza letting the kids run around doing dangerous and stupid stuff with the intention of swooping in once it got profitable enough
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Money laundering and Ponzi schemes.
Those have been around a lot longer than bitcoin, and they're easier to get away with if you use cash, which, again unlike bitcoin, has no audit trail. I get that you have no idea what the hell an audit trail is or why that would be relevant to the two activities you mentioned, so you'll just have to take my word for it.
If we had a functioning civilization the governments would have cracked down a long time ago
In a democracy with actual free speech protections, a government can't do this. Bitcoin itself is entirely speech. The whole pgp issue surrounding cryptography code being equivalent to munit
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In a democracy with actual free speech protections, a government can't do this. Bitcoin itself is entirely speech.
You are mistaking the code to implement Bitcoin with the actual coins themselves. If they were treated as illegal securities the actual value, and thus the problems they cause would be much more limited. I'm not saying this is a good idea, just that the fact that something is data (most securities are too) doesn't make it just speech.
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I didn't read his original code, but most contributors said the original was basically crap,
I have looked at the code and I disagree, the quality was high.
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This one?
https://github.com/Maguines/Bi... [github.com]
That's supposedly the original privately distributed code that they commented on. This is the very first public alpha:
https://github.com/Maguines/Bi... [github.com]
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Which original code are you talking about? The first public alpha? Or the release that was distributed privately?
Blindsided by 11 Billion (Score:2)
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Meanwhile, Trump would have pardoned him [wikipedia.org] and he wouldn't have had to forfeit the $11 billion as long as he gave Trump a cut.
But hey, I have every confidence that the facts won't stop you from whining about Democrats being soft on crime.
Really? (Score:2)
Really? He made ELEVEN BILLION DOLLARS that he had to forfeit and yet was so ignorant of how the company was run that he didn't know that a scam was going on? Seriously Judge Kaplan? What kind of insider tips did he provide you to make you pretend to be that naive?
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Re: Really? (Score:2)
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He made ELEVEN BILLION DOLLARS that he had to forfeit and yet was so ignorant ..
No. $11 billion's the sum of the FTX fraud committed by all parties. Each person convicted of a role in the fraud is gettin ordered to forfeit $11 Billion.
This will be the case, even if the executive made $0 off the fraud.
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I think Sam Bankman-Fried and Bernie Madoff missed the memo, maybe go tell them so that they can submit this evidence to a judge to secure their release?
"No jail time": The creed of the corporate exec. (Score:2)
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Sounds like "remarkable cooperation" is this guy's professional specialty, whether with the fraud going on all around him or with the criminal investigation into the fraud. How convenient.
The irony of your professional specialty remark? Us taxpayers finding out a few federal-pensioner-net-worth reports from now how the Good Guys “confiscated” a few billion for themselves under SOP in exchange for those no-jail-time sentences.
Yup. You’re right. More fraud than you can imagine. A society that worships Dollar Almighty, sponsored by the very government that created it. How very convenient.
Human Behavior. A denominator so common it’s practically predictable after
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11 billion what, exactly? (Score:2)
Theres a BIG difference between these two things. 11 gigaUSD is real purchasing power. The value of crypto tends to vanish the second you actually try to sell it.
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If you don't know what $11 billion means, you shouldn't be around money.
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Hooray for wash trades!
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It's not a wash trade. I'm just rearranging funds in my multiple wallets for my own personal organizational purposes. Totally legit. Totally.
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Are we talking 11 billion USD? Or crypto “worth” supposedly 11 billion dollars? Theres a BIG difference between these two things. 11 gigaUSD is real purchasing power. The value of crypto tends to vanish the second you actually try to sell it.
Vanishing value? Thats one hell of a fiat alternative. Especially when the best of the best is BIG valued at tens of thousands of real purchasing power.
Forget recognizing it as legal tender. When governments start taxing it like real value, citizens tend to be willing to defend that value with an equal amount of tenacity and aggression. Go figure.
Then repeat after me... (Score:2)
Fuck our corporate overlords.
There is an injustice that has been growing in my lifetime; the United States is evolving into a plutocracy. If you amass enough wealth, you can buy a "justice" only accessible and reserved for the corporate elite. They have evolved into the ruling class, where, thanks to Citizens United, they can donate incredible sums of money to government powers to keep their "justice" as-is.
26B (Score:2)
Per teh googles, his net worth was 26 billion in 2021.
So he is losing about 40% of his net worth with no other penalties.
I know lots of other people would make that trade, who also unwittingly did something illegal.
Literally buying justice.
What *exactly* did Singh do here? (Score:2)
I mean... he was the head of engineering, not the head of finance or business or whatnot. It's kind of a dangerous situation if engineers are now on the hook if other people commit crimes using the app they built, thinking it was for legitimate purposes. Conspiracy charges seem rather contrived, assuming the articles' authors aren't lying. How can you conspire to do something you didn't even know was happening, after all?
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Knowing about the crime and taking steps to facilitate the crime makes you a conspirator.
That's also why he gets ordered to pay $11 Billion, same as SBF and the other executives. It doesn't matter how small your role in the fraud is -- By being a conspirator, even if your role is very minor; your financial liability for the fraud becomes just as high as the people who profited off it the most and masterminded it.
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Right. But the article specifies that he dodged NOT know about the crime while they were happening, but found out about after-the-fact, only two months before SBF went down. So, unless the article's author lied, Singh was charged and punished for "conspiracy" to commit crimes he not only did not commit, but didn't even know were being committed. Granted, the dude's probably a douchebag... he willingly associated with SBF, after all... and he's still going to be plenty rich and will have a comfortable lif
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article specifies that he dodged NOT know about the crime while they were happening
Most likely they had knowledge of something that is criminal and chose not to go along with it and not report it immediately to authorities: even if it is minuscule compared to the total fraud - that would be enough. With conspiracy you don't have to know about the whole crime. Just knowing having criminal intentions along with any of the conspirators will do.
For example: A member of a gang who was present at any of the talk
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In this case, the engineer knew what was going on [archive.org]. He wrote that code himself.
pitiful (Score:1)
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If we didn't have that system, there'll be a lot less justice. Like it or not, the government doesn't often have the evidence to prosecute most crimes. Unless you want justice to be administered based on hearsay and gut feeling. It's hard enough that people don't snitch because being labeled a snitch is considered demeaning.
TIL people still use X (Score:2)