• FTX’s former director of engineering, Nishad Singh, is reportedly approaching a plea deal with U.S. prosecutors
• The CFTC and SEC are also said to be filing charges against him
• Previous reports suggested that Singh had discussed a cooperation deal with the authorities
FTX Employee Nears Plea Deal
FTX’s former director of engineering, Nishad Singh, is reportedly nearing a plea deal with U.S. prosecutors from the Manhattan district office. The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are said to be filing charges as well.
Previous Reports of Cooperation Deal
Previously reported in January 2021, Singh had discussed a cooperation deal that was likely to lead to a plea deal. At the time, he was not accused of any wrongdoing but now faces charges from the aforementioned agencies.
Singh’s Role at FTX
As FTX’s director of engineering, Singh played an integral role in developing software used to transfer funds between FTX and Alameda Research—a crypto trading firm co-founded by Sam Bankman-Fried who awaits trial for criminal charges related to campaign finance violations. Additionally, information about other activities could provide assistance in the case against Bankman-Fried as well as aid in resolving the current legal issue involving Singh himself.
Two Other Former Associates Reach Plea Deals
In December 2020, two other former associates of FTX—Caroline Ellison (former CEO at Alameda Research) and Gary Wang (co-founder at FTX)—reached plea deals after being charged by authorities. Both have been cooperating against Bankman-Fried since then in hopes of minimizing their own sentences when they appear before court on their respective dates later this year.
If Singh reaches his own plea deal he will become the third FTX associate to do so while criminal proceedings against Bankman-Fried remain ongoing despite no official confirmation from any agency involved yet regarding Bloomberg’s reportage on these developments