Nishad Singh – Despite the fact that the crypto exchange site FTX has been down for months, the crackdown on its leadership continues.
Nishad Singh, a former FTX executive, recently pled guilty.
He is currently assisting the FBI investigation into the alleged billion-dollar scam at the once-famous exchange.
The news
Nishad Singh, the platform’s former director of engineering, has pled guilty to six conspiracy counts, including:
- Conspiracy to commit wire fraud
- Conspiracy to commit money laundering
- Conspiracy to violate federal campaign finances laws
Singh is the third top executive and close confidante of Sam Bankman-Fried to enter a guilty plea.
He joins Gary Wang, the exchange’s co-founder, and Caroline Ellison, the former head of Alameda Research, the exchange’s sister hedge fund.
Wang and Ellison entered pleas of guilty 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.”
Penalties
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 finalize the agreement, a court must sign off on it and decide how much fines and disgorgement Nishad Singh must pay in addition to the period of the ban.
Nonetheless, Singh did not challenge his responsibility, according to the CFTC.
Restitution, disgorgement, and permanent trading restrictions are among the remedies sought by the agency.
Apologies
Lawyers Andrew Goldstein and Russell Capon, Nishad Singh’s attorneys, issued an apology statement 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.”
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The head of the company
As Nishad Singh, Gary Wang, and Caroline Ellison face harsh punishment, the head of their torn empire is still waiting for his punishment.
Sam Bankman-Fried is facing 12 criminal charges for his participation in one of the largest financial thefts in history, according to prosecutors and the international community.
Despite the overwhelming evidence, SBF pleaded not guilty to some of the allegations.
He will appear in court at some point in the future, with a date still to be determined on some of the allegations.
Sam Bankman-Fried is also freed on a $250 million bond.
The allegations
Prosecutors claim that Sam Bankman-Fried, Nishad Singh, Gary Wang, and Caroline Ellison (among others) misappropriated client accounts at FTX.
They allegedly used the money for the following:
- Strengthen Alameda Research’s business operations
- Self Enrichment
- Create venture investments
- Buy the influence of US politicians
Authorities also stated that SBF raised around $1.8 billion from investors.
Political influence
An indictment against him was released last week, revealing that prosecutors claimed more than 300 political donations were made.
The gifts were apparently made in a bid to influence bitcoin law and regulation.
Moreover, they were made in the identities of two FTX workers designated in the indictments as CC-1 and CC-2.
CC-1 is Nishad Singh, and CC-2 is Ryan Salame, according to persons familiar with the matter and federal and state election records.
Prosecutors claim Singh was picked as the face of left-wing contributions.
According to the indictment, SBF plotted to donate at least a million dollars to a super PAC supporting a candidate running for a US House seat who seemed to be pro-LGBTQIIA+ issues.
A SBF political strategist reportedly asked Nishad Singh to take the fall for the contribution, 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.”
Prosecutors said that Nishad Singh showed uneasiness but acknowledged that no one at the firm trusted someone who was “bi/gay” and capable of making the contribution.
Moreover, an FTX employee was charged with sending $107,000 from SBF’s account to the New York Democratic Committee before the 2022 midterm elections.
According to the indictment, they were directed to amend it and say it originated from CC-1.
On October 28, Nishad Singh contributed $107,000 to the committee, according to records.
