Nishad Singh – FTX, the cryptocurrency exchange site, has been down for several months, but the crackdown on its leadership continues.
Nishad Singh, a former FTX executive, has just pleaded guilty.
He is currently assisting the FBI with its investigation into the suspected billion-dollar fraud at the previously impenetrable exchange.
Former platform director of engineering Nishad Singh pleaded guilty to charges on six counts of conspiracy, including:
- Conspiracy to commit wire fraud
- Conspiracy to commit money laundering
- Conspiracy to violate federal campaign finances laws
Singh is Sam Bankman’s third senior executive and closest confidante to enter a guilty plea.
He joins Gary Wang, the exchange’s co-founder, and Caroline Ellison, the former CEO of Alameda Research, the exchange’s sister hedge fund.
Wang and Ellison entered guilty pleas in 2022 and are currently collaborating against SBF.
“Today’s guilty plea underscores once again that the crimes at FTX were vast in scope and consequence,” said Damian Williams, the US attorney for the Southern District of New York.
“They rocked our financial markets with a multibillion-dollar fraud. And they corrupted our politics with tens of millions of dollars in illegal straw campaign contributions.”
“The crimes demand swift and certain justice, and that is exactly what we are seeking in the Southern District of New York.”
Nishad Singh agreed to settle after the Securities and Exchange Commission and the Commodities Futures Trading Commission filed civil charges against him.
Singh consented to be barred from serving as an officer or director as part of the SEC agreement.
To ratify the agreement, a court must sign off on it and determine how much fines and disgorgement Nishad Singh must pay in addition to the ban period.
According to the CFTC, Singh did not defend his obligation despite this.
Restitution, disgorgement, and permanent trade restrictions are among the remedies sought by the government.
Andrew Goldstein and Russell Capon, Nishad Singh’s attorneys, issued an apology statement on his behalf on Tuesday.
“Nishad is deeply sorry for his role in this and has accepted responsibility for his actions.”
“He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case.”
The head of the company
Despite the fact that Nishad Singh, Gary Wang, and Caroline Ellison are facing severe punishment, the leader of their broken empire awaits him.
According to authorities and the international community, Sam Bankman-Fried is facing 12 criminal charges for his participation in one of history’s largest financial thefts.
In the face of overwhelming evidence, SBF pleaded not guilty to several of the accusations.
He will appear in court at some point in the future, with some of the accusations still pending.
Sam Bankman-Fried has been freed on $250,000 bail as well.
Prosecutors suspect that Sam Bankman-Fried, Nishad Singh, Gary Wang, and Caroline Ellison, among others, stole client accounts at FTX.
They allegedly used the money for the following purposes:
- Strengthen Alameda Research’s business operations
- Self Enrichment
- Create venture investments
- Buy the influence of US politicians
SBF, according to officials, garnered around $1.8 billion from investors.
An indictment was released against him on Monday, suggesting that prosecutors claimed more than 300 political donations were made.
The contributions appear to have been made in an effort to influence bitcoin policy and regulation.
Additionally, they were carried out using the names of two FTX workers named as CC-1 and CC-2 in the allegations.
CC-1 is Nishad Singh, and CC-2 is Ryan Salame, according to persons familiar with the matter and federal and state election records.
According to prosecutors, Singh was picked to represent left-wing donations.
According to the indictment, SBF intended to donate at least $1 million to a super PAC that supported a candidate for a US House seat who seemed to be pro-LGBTQIIA+ issues.
According to sources, an SBF political strategist convinced Nishad Singh to accept responsibility for his participation, telling him:
“In general, you being the center left face of our spending will mean you giving to a lot of woke *** for transactional purposes.”
According to prosecutors, Nishad Singh voiced anxiety, but conceded that no one at the company trusted someone who was “bi/gay” and capable of making the payment.
In addition, an FTX employee was suspected of transferring $107,000 from SBF’s account to the New York Democratic Committee before the 2022 midterm elections.
According to the accusation, they were instructed to modify it so that it seemed to be from CC-1.
On October 28, Nishad Singh contributed the group $107,000, according to documents.
Image source: Bloomberg