Nishad Singh of FTX receives 3 years of supervised release instead of jail time for his part in a crypto fraud case.

• In late 2022, Nishad Singh became the fourth former FTX executive to receive punishment for his role in the collapse of the crypto exchange.
• Last year, early on, Singh, FTX's former engineering head, pleaded guilty to six criminal charges.
• FTX founder Sam Bankman-Fried received the harshest sentence of 25 years.

On Wednesday, Nishad Singh, a former FTX executive, was given time served and three years of supervised release, making him the fourth ex-employee of the collapsed crypto exchange to be punished. Additionally, he was ordered to forfeit $11 billion.

Singh, despite facing a maximum sentence of 75 years, was commended by New York Judge Lewis Kaplan for his cooperation with the government. Kaplan was entirely convinced that Singh's involvement in the fraud was less extensive than that of FTX founder Sam Bankman-Fried and Caroline Ellison, the former CEO of sister hedge fund Alameda Research.

Recently, Ellison testified as the main prosecution witness against Bankman-Fried and was subsequently sentenced to two years in prison.

Last year, FTX's head of engineering, Singh, pleaded guilty to six criminal charges, including securities fraud, money laundering, and campaign finance law violations.

Singh, alone in the elevator bank before the hearing began, rehearsed his statement from a single printed page. He said in a soft voice that he had strayed from his values and didn't expect forgiveness. He added that assisting in the government's investigation gave him purpose.

In March 2023, Bankman-Fried was sentenced to 25 years in prison and ordered to pay $11 billion after FTX spiraled into bankruptcy in November 2022 due to failed withdrawal demands and allegations of stealing $8 billion in client funds.

Andrew Goldstein, Singh's lawyer and a former assistant U.S. attorney for the Southern District of New York, stated that Singh joined FTX's wrongdoing at a later stage and highlighted his extensive cooperation with the government, including testifying at Bankman-Fried's trial last year.

Singh met with prosecutors on at least 24 occasions for multiple hours and showed "earnest remorse and eagerness to assist," as well as "brought to the Government's attention criminal conduct that the Government was not aware of and, in some cases, may have never discovered but for Singh's cooperation."

The campaign finance scheme was not known by the government until it was brought to their attention by Singh, as noted by one of the prosecutors in the trial, Nicolas Roos.

Bankman-Fried was originally accused of using stolen customer funds to make $100 million in campaign contributions before the 2022 mid-term elections.

Ross told Judge Kaplan that leniency "would send an important message."

The defendant was commended by Kaplan for doing the right thing during sentencing.

On the 21st floor of the Manhattan courthouse, more than 30 of Singh's loved ones, including his fiancee, parents, and brothers, filled the pews.

Over 100 individuals wrote letters supporting Singh, including one from Gabe, Bankman-Fried's brother, who described him as "one of the kindest people [he has] ever known." Gabe requested that Judge Kaplan treat Singh with the same compassion he has shown others throughout his life.

John Ray, who became FTX CEO after the bankruptcy filing in 2022, wrote a letter on Singh's behalf, stating that he had been instrumental in providing valuable assistance and cooperation during the bankruptcy proceedings. Ray emphasized that Singh had made significant contributions by producing documents and returning Bahamian real estate purchased with FTX funds.

Ryan Salame, a former top lieutenant of Bankman-Fried, was sentenced to seven and a half years in prison in May. Gary Wang, the co-founder and ex-technology chief of FTX, will be sentenced on November 20.

— CNBC's Dan Mangan contributed to this report.

Caroline Ellison was given a two-year prison sentence for her part in the FTX collapse.