Nishad Singh reportedly agreed to plead guilty to one count of wire fraud, one count of conspiracy to commit wire fraud on FTX clients and one count of conspiracy to commit commodity fraud.
Nishad Singh, former director of engineering at FTX, is expected to plead guilty to fraud charges brought by US prosecutors investigating now-bankrupt cryptocurrency exchange FTX, reported Reuters on February 28.
During the hearing in federal court in Manhattan, Singh’s attorney announced that his client had agreed to plead guilty to one count of wire fraud, one count of conspiracy to commit wire fraud against FTX customers, and one count of conspiracy to commit commodities.
Nishad Singh, the former director of engineering at now-bankrupt crypto exchange FTX, has agreed to plead guilty to U.S. criminal charges, his lawyer said in court, as U.S. prosecutors ramp up their probe into members of Sam Bankman-Fried’s inner circle https://t.co/KinlD4h4Zj pic.twitter.com/8UFekP2XF5
— Reuters Legal (@ReutersLegal) February 28, 2023
Nishad Singh, the former head of engineering at FTX, now bankrupt, has agreed to plead guilty to US criminal charges, his lawyer said in court, as US prosecutors intensify their investigation into the ring members. intimate of Sam Bankman-Fried.
According to CNBC, Singh was a close friend of Bankman-Fried’s younger brother in high school and became FTX’s director of engineering in 2019. In 2020, Singh allegedly tampered with FTX’s software to allow Alameda, a firm where he had previously worked as a CEO, to bypass automatic asset sales when he lost too much borrowed money.. This exemption allowed Alameda to continue borrowing from FTX regardless of the amount of collateral behind its loans, according to Reuters. The US Securities and Exchange Commission has alleged that this code change gave Alameda a “virtually unlimited line of credit” in FTX, and that the billions of dollars FTX loaned Alameda over the next two years they came from FTX clients.
Singh, who has been absent from public view for a long period compared to other FTX executives, appeared in early January for a bidding session at the office of the Attorney General for the Southern District of New York. During a solicitation session, the person providing information may receive partial protection to divulge his ideas to prosecutors.
Singh’s statement comes after several close associates of Bankman-Fried have agreed to cooperate with prosecutors in recent months.
In December 2022, Cointelegraph reported that former FTX and Alameda Research executives Caroline Ellison and Gary Wang have pleaded guilty to fraud charges, and are cooperating with the Justice Department’s investigation into former FTX CEO Sam Bankman-Fried.
Former FTX CEO Sam “SBF” Bankman-Fried has pleaded not guilty to eight federal charges and currently lives with his parents in California. Bankman-Fried’s criminal trial in federal court is scheduled to begin in October, while FTX’s bankruptcy case is pending in the US Bankruptcy Court for the District of Delaware.
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