Former FTX executive Nishad Singh pleads guilty to charges related to crypto exchange collapse

Singh is the latest person to plead guilty and cooperate with federal investigators.

February 28, 2023, 1:15 PM

Nishad Singh, former director of engineering at FTX, the bankrupt cryptocurrency exchange founded by Sam Bankman-Fried, on Tuesday agreed to plead guilty to criminal charges, according to his lawyers and federal prosecutors in New York.

Singh agreed to plead guilty to six counts of fraud and conspiracy contained in unsealed information Tuesday, becoming the third member of Bankman-Fried’s inner circle to plead guilty and cooperate with federal prosecutors as they build a case against the people. who is believed to be responsible for what US Attorney Damian said. Williams called one of the biggest financial frauds in American history.

“Today’s guilty plea demonstrates once again that the crimes at FTX were massive in scope and consequence,” Williams said in a statement. “They have disrupted our financial markets with multi-billion dollar fraud. And they have corrupted our politics with tens of thousands of dollars in illegal straw campaign contributions. These crimes demand swift and certain justice and that is exactly what we seek in the District of Southern New York.”

Caroline Ellison, former CEO of Alameda Research, a hedge fund controlled by Bankman-Fried, and Gary Wang, co-founder of FTX, pleaded guilty to criminal charges and agreed to assist in the government’s prosecution. Bankman-Fried pleaded not guilty to eight criminal charges and prosecutors recently added four more.

Photo: The FTX Arena logo is seen where the Miami Heat basketball team plays on Nov. 12, 2022, in Miami.

The FTX Arena logo is seen where the Miami Heat basketball team plays on Nov. 12, 2022, in Miami.

Marta Lavandier/AP, FILE

Singh contributed to the fraud that led to FTX’s $32 billion bankruptcy by “providing misleading information to auditors about FTX’s revenues,” knowing that information would be given to potential investors, according to the indictment.

Singh was also part of the conspiracy to make political contributions to candidates and committees paid for using funds from Bankman-Fried’s privately controlled hedge fund, Alameda Research, but reported to the Federal Election Commission under different names, the information.

In exchange for his cooperation, federal prosecutors agreed to recommend a sentence below the maximum 75 years attached to the charges, according to the plea agreement that was also unsealed Tuesday.

Prosecutors agreed to Singh’s release on a $250,000 personal recognizance bond.

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