Former FTX Exec to Plead Guilty: Details

The former Co-Lead Engineer of FTX Trading Ltd. (FTX), Nishad Singh admitted guilt to fraud charges brought by American prosecutors and consented to assist them in their inquiries into FTX’s ex-CEO Sam Bankman-Fried (SBF). 

According to a report by Reuters, ex-Facebook employee’s attorney revealed during the hearing in a federal court in Manhattan that his client had decided to plead guilty to one count of wire fraud, one count of conspiracy to conduct wire fraud on FTX customers, and one count of conspiracy to commit commodities fraud.

Singh acknowledged his part in the loss of FTX users’ money and said: 

“I am unbelievably sorry for my role in all of this.” 

FTX Founder Pleads Not Guilty

Meanwhile, on the contrary, SBF entered a not guilty plea to eight criminal charges, which, if proven true, could result in a 115-year sentence.

Notably, Singh had also known Gabriel, SBF’s brother, for a very long period. After a disclosure meeting at the Southern District of New York Office of the United States Attorney, he reappeared during the first week of January. On February 14, court orders in a class action lawsuit against the venture capital firm Sequoia Capital and the private equity companies Thoma Bravo and Paradigm were served on Singh and other members of the FTX inner circle. After which, it was predicted that he might enter a guilty plea.

Singh would pattern himself after former Alameda CEO Caroline Ellison and former FTX Chief Technology Officer Gary Wang, who both submitted guilty pleas to federal fraud charges in December after reaching agreements with prosecutors and cooperating with the Justice Department’s probe. 

Many close friends of Bankman-Fried allegedly consented to assist investigators recently. According to a court document filed on December 14th, co-CEO Salame alerted the Bahamian regulators to a covert transfer of client money from FTX to its sister trading company Alameda Research.