US federal authorities are investigating former FTX CTO Nishad Singh, according to a January 5 Bloomberg report.
This report suggests that if Manhattan prosecutors find that Singh was involved in the mismanagement of FTX funds, he could be charged before the end of January. Bloomberg was unable to determine whether Singh is cooperating with authorities.
The Manhattan prosecutors mentioned by Bloomberg are implied to be members of the U.S. Attorney’s Office for the Southern District of New York, which has handled most aspects of the FTX case so far. Two regulators – the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) – are also probing Singh, according to today’s report.
None of the above organizations have confirmed that they are probing Singh. Instead, Bloomberg said it spoke to sources “familiar with the matter.”
Although no action was taken against Singh, he was often mentioned in connection with the collapse of FTX. In November, reports suggested that Singh and others knew that FTX was transferring funds to its sister company, Alameda Research. In December, FTX Digital Markets CEO Ryan Salame named Singh as one of three people with sufficient credentials to make these transfers.
Singh has also been mentioned in various other reports. In November, he was identified as the beneficiary of a $543 million loan from Alameda. He was also named alongside Salame and former FTX CEO Sam Bankman-Fried for making controversial political donations during the last election cycle. Additionally, surveys of FTX condominiums in the Bahamas named Singh as resident and sole proprietor.
Reports suggest Singh has been missing since FTX filed for bankruptcy in November, possibly prompting the investigation that is believed to be taking place now.
Singh is at least the third of the Bankman-Fried associates to pass a federal exam. In December, former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang both reached a plea deal with authorities.
Bankman-Fried himself faces various charges due to his leadership role. His last hearing took place on January 3 and his trial will begin in October 2023.
