Nishad Singh, Indian-Origin Engineer At FTX, Pleads Guilty To Fraud Charges

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A 27-year previous Indian-origin engineer at a crypto asset buying and selling platform has pleaded responsible to fees of commodities fraud.

Nishad Singh was the previous co-lead engineer of FTX Trading Ltd. He is dealing with federal fees for his position in a multiyear scheme to defraud fairness buyers in FTX, the crypto buying and selling platform began by Singh together with Samuel Bankman-Fried and Gary Wang.

In December final yr, federal authorities had charged Bankman-Fried with orchestrating a scheme to defraud fairness buyers in FTX.

The Securities and Exchange Commission charged Singh Tuesday. In a parallel motion, the US Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission (CFTC) additionally introduced fees in opposition to Singh.

Singh entered a responsible plea as to commodities fraud and different fees within the separate, parallel motion in opposition to him within the Southern District of New York.

According to the SEC’s criticism, Singh created a software program code that allowed FTX buyer funds to be diverted to Alameda Research, a crypto hedge fund owned by Bankman-Fried and Wang, regardless of false assurances by Bankman-Fried to buyers that FTX was a secure crypto asset buying and selling platform with subtle danger mitigation measures to guard buyer belongings and that Alameda was simply one other buyer with no particular privileges.

The criticism alleges that Singh knew or ought to have identified that such statements had been false and deceptive.

The criticism additionally alleges that Singh was an energetic participant within the scheme to deceive FTX’s buyers. As FTX neared collapse, Singh withdrew roughly $6 million from FTX for private use and expenditures, together with the acquisition of a multi-million greenback home and donations to charitable causes.


Singh, a United States citizen, was the Head of Engineering at Alameda and, later, at FTX. Singh resided in Hong Kong and The Bahamas from May 2019 by November 2022.

The SEC criticism stated Singh grew up in California and was a childhood good friend of Bankman-Fried’s brother. In 2017, Bankman-Fried and Wang based Alameda Research LLC, a crypto asset hedge fund, and Bankman-Fried invited Singh to help them with engineering initiatives.

Around April 2019, Singh started working with Wang to construct FTX, which launched in May of that yr. Although he labored primarily as an FTX engineer starting within the spring of 2019, Singh retained his position and title as Alameda’s Head of Engineering, and continued to work on Alameda initiatives.

Singh’s obligations and profile inside each Alameda and FTX grew considerably over time, and he in the end held the position and title of Head of Engineering at each corporations.

The SEC’s criticism seeks an injunction in opposition to future securities regulation violations and civil penalty amongst different penalties.

Singh has consented to a bifurcated settlement, which is topic to court docket approval, beneath which he might be completely enjoined from violating the federal securities legal guidelines. SEC stated Singh is cooperating with its ongoing investigation.

The Commodity Futures Trading Commission’s two-count criticism fees Singh with fraud by misappropriation and with aiding and abetting fraud dedicated by Samuel Bankman-Fried, FTX Trading Ltd and Alameda.


Singh was a shareholder and senior govt of FTX, and was FTX’s Director of Engineering on the time of its collapse in November 2022.

The CFTC criticism fees that Singh personally misappropriated thousands and thousands of {dollars} of belongings, together with FTX buyer belongings, by poorly documented “loans” from Alameda and other improper withdrawals of funds from FTX for various personal expenditures, and did so even after Singh knew or should have known the source of those assets was, at least in part, FTX customer assets.

Singh does not contest his liability on the CFTC’s claims, and has agreed to the entry of a proposed consent order of judgment as to his liability on the charges in the complaint, CFTC said.

SEC Chairman Gary Gensler had said in December last year that Bankman-Fried “built a house of cards” on a basis of deception whereas telling buyers that it was one of many most secure buildings in crypto.


The alleged fraud committed by Bankman-Fried is a “clarion call to crypto platforms that they need to come into compliance with our laws,” Gensler had said.

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(This story has not been edited by News18 workers and is revealed from a syndicated information company feed)

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