Former FTX Engineering Director Nishad Singh Pleads Guilty to Fraud Charges

Singh agreed to cooperate with the prosecutors’ investigation into FTX founder and former CEO Sam Bankman-Fried.

Nishad Singh sitting on bed in jail.
  • Nishad Singh pleaded guilty to all six criminal charges.
  • He said he was “incredibly sorry” for his role in the FTX debacle.
  • Singh agreed to cooperate with prosecutors.

Nishad Singh, the former director of engineering at the bankrupt crypto exchange FTX, pleaded guilty to multiple criminal charges on Tuesday.

According to Reuters, Singh pleaded guilty to one count of wire fraud, three counts of conspiracy to commit fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to defraud the United States by violating campaign finance laws.

Singh also got sued by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), who filed civil lawsuits against Singh.

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“I am unbelievably sorry for my role in all of this,” Singh said. He added that he knew that by the middle of 2022 that FTX was lending customer funds to Alameda Research, FTX founder and CEO Sam Bankman-Fried’s hedge fund.

Singh also agreed to cooperate with the prosecutors’ investigation into Bankman-Fried, who has pleaded not guilty to eight criminal charges brought against him last December. Federal prosecutors announced additional charges against Bankman-Fried last week describing illegal political donations.

Singh is the third high-level employee at FTX and Alameda to plead guilty to criminal charges. FTX co-founder Gary Wang and Alameda CEO Caroline Ellison pleaded guilty to four and seven charges in December and agreed to cooperate with the investigators.

On the Flipside

  • It’s unclear how much time in prison Singh is facing.
  • Bankman-Fried’s case is still ongoing.

Why You Should Care

Singh pleading guilty and admitting to knowing that FTX customer funds were being sent to Alameda, among other places, shows how much illegal activity happened at FTX. With revelations detailing what happened behind closed doors still coming, Bankman-Fried’s chances of dodging prison time are decreasing by the day.

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Read more about the latest developments in the FTX story:

FTX Lawsuits Pile Up: Silvergate Bank, Sequoia Capital, Paradigm, Face Litigation

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.