• Nishad Singh, former director of engineering at FTX, pleaded guilty to fraud charges brought against him by U.S. prosecutors.
• He agreed to cooperate in their investigations around former FTX CEO Sam Bankman-Fried (SBF).
• Singh’s lawyer announced that he had agreed to plead guilty to one count of wire fraud, one count of conspiracy to commit wire fraud on FTX customers, and one count of conspiracy to commit commodities fraud.
Nishad Singh Pleads Guilty To Fraud Charges
Nishad Singh, former director of engineering at FTX, has pleaded guilty to wire fraud, conspiracy to commit wire fraud on FTX customers and conspiracy to commit commodities fraud.
Sam Bankman-Fried Pleads Not Guilty
During the hearing in a Manhattan federal court, SBF pleaded not guilty to eight criminal counts which could result in 115 years in prison should he be convicted.
Alameda Research Misappropriates Funds
Singh confessed Alameda Research’s role in misappropriating FTX users’ funds. He admitted that his code change gave Alameda a “virtually unlimited line of credit” at FTX and allowed them access to billions of dollars that came from FTX customers.
Background Of Singh And Bankman-Fried
CNBC reported that Singh was a close friend of Sam Bankman-Fried’s younger brother in high school and became FTX’s director of engineering in 2019.SEC Investigating The Case
The U.S. Securities and Exchange Commission is currently investigating the case.