Former FTX exec pleads guilty to fraud

Article Reading Time:
2 minutes.

The former technical director of the bankrupt FTX officially pleaded guilty to criminal offenses and agreed to cooperate with the investigation.

“I am incredibly sorry for my role in all of this,” said Nishad Singh, an associate of FTX founder Sam Bankman-Fried.

Singh admitted that by mid-2022 there wasis aware that Alameda borrowed funds from FTX clients without their knowledge. The executive pleaded guilty to several counts, including fraud, conspiracy to commit fraud and conspiracy to commit money laundering. 

“He wants to do everything possible to improve the situation of the victims, including by assisting the authorities,” Nishad Singh’s lawyers said.

Also, the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) brought fraud charges against him.

The fact that the former technical director will make a deal with the investigation,
was reported back in January.Prosecutors were going to weigh the value of the information before deciding whether to offer the detainee a solution that would allow him to be found guilty and cooperate in exchange for qualified immunity.

And in February it became
it is known that Singh's lawyers were activelynegotiations with the Manhattan prosecutor's office. The agreement could include cooperating with authorities and further isolating Bankman-Fried, who never pleaded guilty to the eight counts in the indictment.

Prosecutor's office
accuses Bankman-Fried of money launderingclients at the expense of political and charitable donations. Alameda Research Director Caroline Ellison and FTX co-founder Gary Wang have already pleaded guilty to fraud and began cooperating with authorities. Following the public announcement of Ellison and Wang's decision, prosecutor Damian Williams issued a warning to those from whom prosecutors had not yet heard.