FTX Scandal Deepens: Sam Bankman-Fried’s Right-Hand Man Nishad Singh to Plead Guilty to Fraud

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 26, 2023 06:55 EDT

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Nishad Singh, the former director of engineering for collapsed crypto exchange FTX and Sam Bankman-Fried’s right-hand man, is preparing to reach a plea deal with U.S. prosecutors

According to a Friday report from Bloomberg, the former FTX executive is planning to plead guilty to fraud charges for his role in the alleged scheme. Citing people familiar with the matter, the report said the move comes as Manhattan prosecutors prepare to file fraud charges against Singh.

The plea deal is likely to include Singh cooperating with authorities, which could further isolate Bankman-Fried, who has pleaded not guilty to an eight-count indictment and is awaiting trial. The deal with Singh still has to be finalized.

Among the other executives of FTX and its sister companies, former Alameda Research CEO Caroline Ellison has agreed to plead guilty to seven offenses, which include charges of wire fraud, securities fraud, and money laundering. 

Likewise, Gary Wang, FTX’s former chief technology officer, has pleaded guilty to criminal charges. Both Ellison and Wang are cooperating with federal investigators.

The report added that the Commodity Futures Trading Commission and the Securities and Exchange Commission, two top US market regulators, plan to sue Singh over his role in the alleged scheme. 

Singh, 27, played a major role in the day-to-day operations at FTX as head of engineering. He initially joined Alameda back in 2017 before establishing FTX two years later with Wang and Bankman-Fried. 

Notably, he is a graduate of the University of California at Berkeley, where he met his longtime girlfriend, Claire Watanabe, who would later join FTX as its head of marketing and HR.

Latest Developments in the FTX Saga

FTX and its group of crypto companies filed for Chapter 11 bankruptcy in early November. Sam Bankman-Fried was later arrested in The Bahamas after US prosecutors formally filed criminal charges against him. He was eventually extradited to the US where he was released from jail after posting a $250m bond in a New York court.

Bankman-Fried has been charged with eight criminal charges, including wire fraud and conspiracy by misusing customer funds. He is facing more than 100 years in prison for the crimes he is accused of. He is due in federal court in October. 

In the latest developments in the FTX saga, a New York judge has put cases against the former FTX CEO brought by the SEC and the CFTC on hold until the criminal cases against him are concluded.

Furthermore, new court documents have eventually revealed the identities of the two mysterious co-signers on FTX founder Sam Bankman-Fried’s bond, who turned out to be Andreas Paepcke and Larry Kramer, Stanford University professors and close friends of SBF’s parents.