Another member of Sam Bankman-Fried’s inner circle reportedly intends to plead guilty to criminal charges for his role in the alleged fraud that occurred at cryptocurrency exchange FTX. According to unnamed sources familiar with the matter, Nishad Singh, the former engineering director of FTX, is trying to negotiate a settlement with New York prosecutors.
Sources say former FTX engineering director close to plea deal, Singh could provide critical testimony
On Friday, Bloomberg reporter Allyson Versprille reported that Nishad Singh, the former director of engineering at FTX, is negotiating a deal with federal prosecutors in Manhattan. Two other people in Sam Bankman-Fried’s inner circle, ex-Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, have already pleaded guilty to charges related to the multi-year fraud that allegedly took place at FTX since 2019.
Anonymous sources familiar with the matter informed Versprille of the deal, and the reporter noted that the deal with Singh had not been finalized. The Southern District of New York (SDNY) attorneys office declined to comment on the alleged deal, and Versprille also noted that a Bankman-Fried representative declined to comment. If Singh cooperates with authorities against Bankman-Fried, the former FTX CEO will be outnumbered, as Wang and Ellison are already cooperating with authorities.
Bankman-Fried is awaiting trial scheduled for October 3, 2023, and prosecutors have tried to restrict his use of specific types of electronic devices. The reason for prosecutors’ action against the use of specific electronic devices is that Bankman-Fried was discovered to be using a VPN in January and February 2023. While the judge limited the use by the former FTX’s leader of end-to-end encrypted messaging services like Signal, no decision has yet been made on restricting the use of other forms of electronics, such as VPNs.
Bankman-Fried faces more than 100 years in prison for the crimes he is charged with and he has pleaded not guilty to all eight counts. The co-founder of FTX was charged on Dec. 13, 2022, by a federal grand jury in Manhattan, and SDNY attorney Damian Williams said he was charged with “fraud, money laundering, and campaign finance misdemeanors.” Singh played a crucial role in the engineering and infrastructure of FTX, and he was initially hired by Alameda Research in 2017. Two years later, Singh began working closely with Bankman-Fried and top lieutenants from FTX.
If Singh makes a deal and pleads guilty, he will be the third member of Bankman-Fried’s inner circle to do so. It is not known whether other FTX or Alameda employees work with federal prosecutors. SDNY’s lead prosecutor, Williams, has twice mentioned that if anyone played a role in the FTX collapse and hasn’t come forward, they should do so before authorities come knocking on their door. . “If you were involved in a foul at FTX or Alameda, now is the time to get ahead,” Williams pointed out after revealing that Wang and Ellison were both cooperating.
What do you think of the potential implications of Nishad Singh’s cooperation with the authorities? Share your thoughts on this in the comments section below.
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