• Nishad Singh, the former director of engineering at the bankrupt crypto exchange FTX, pleaded guilty to multiple criminal charges on Tuesday.
• He agreed to cooperate with prosecutors and admitted to knowing that FTX customer funds were being sent to Alameda Research, FTX founder and CEO Sam Bankman-Fried’s hedge fund.
• Federal prosecutors announced additional charges against Bankman-Fried last week describing illegal political donations.
Nishad Singh Pleads Guilty
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 Admits Role in FTX Debacle
Singh said he was „incredibly sorry“ for his role in the FTX debacle and agreed to cooperate with prosecutors. He admitted that he knew by the middle of 2022 that FTX was lending customer funds to Alameda Research, FTX founder and CEO Sam Bankman-Fried’s hedge fund.
Other High-Level Employees Plead Guilty
Sing is not alone in pleading guilty – other high-level employees at both FTX and Alameda have also plead guilty including co-founder Gary Wang and CEO Caroline Ellison who each pled guilty four and seven charges respectively in December 2020.
Bankman-Fried Still Facing Charges
It is unclear how much time in prison Singh is facing but Bankman-Fried’s case is still ongoing with federal prosecutors announcing additional charges against him last week describing illegal political donations. With further revelations detailing what happened behind closed doors coming out all the time his chances of avoiding prison are decreasing steadily.
Conclusion
The article makes clear that there was a great deal of illegal activity occurring within FTX which has come under intense scrutiny since its collapse late last year. With more high level employees now admitting their guilt it looks increasingly likely that Bankman-Fried will face justice for his part in this scandal sooner rather than later.
