Report: Former FTX Director of Engineering Nishad Singh Negotiating Plea Deal with Prosecutors 

Another member of Sam Bankman-Frid’s inner circle is allegedly planning to plead guilty to criminal charges for his role in the alleged fraud that occurred on the FTX cryptocurrency exchange. According to unnamed sources familiar with the matter, Nishad Singh, a former CTO at FTX, is trying to negotiate a deal with the New York Attorney’s Office.

Sources say former FTX CTO close to plea deal, Singh could testify critically

This was reported by Bloomberg correspondent Allison Versprill on Friday. informed that Nishad Singh, former CTO of FTX, is negotiating a deal with the Manhattan federal prosecutor’s office. Two other people close to Sam Bankman-Fried, ex-Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, have already pleaded guilty to charges related to years of fraud that allegedly took place at FTX since 2019.

Unnamed sources familiar with the matter informed Verspille of the deal, and the reporter noted that the deal with Singh had not yet been finalized. The Attorney’s Office for the Southern District of New York (SDNY) declined to comment on the proposed deal, and Versprill also noted that a spokesman for Bankman-Fried declined to comment. If Singh does cooperate with authorities against Bankman-Fried, the former FTX CEO will be outnumbered as Wang and Ellison are already cooperating with authorities.

Bankman-Freed is awaiting trial on October 3, 2023, and prosecutors are trying to restrict his use of certain types of electronic devices. The reason for the prosecution’s action against the use of specific electronics is that in January and February 2023, Bankman-Fried was found to be using a VPN. Although the judge restricted the former FTX executive’s use of end-to-end encrypted messaging services. such as Signal, the decision to restrict the use of other forms of electronics such as VPNs has not yet been made.

Bankman-Fried faces more than 100 years in prison for the crimes he is accused of and has pleaded not guilty to eight counts. The co-founder of FTX was accused On December 13, 2022, a federal grand jury in Manhattan and SDNY attorney Damian Williams said he was charged with “fraud, money laundering and campaign finance.” Singh played a critical role in the design and infrastructure of FTX, and he was originally hired by Alameda Research in 2017. Two years later, Singh began to work closely with Bankman-Freed and senior assistants at FTX.

If Singh makes the deal and pleads guilty, he will be the third member of Bankman-Freed’s inner circle to do so. It is unknown if other FTX or Alameda employees are working with federal prosecutors. SDNY Chief Attorney Williams twice mentioned that if someone played a role in the FTX collapse and didn’t come forward, they should do so before the authorities knock on his door. “If you have been involved in misconduct at FTX or Alameda, now is the time to get ahead of it,” Williams stressed after revealing that Wang and Ellison were cooperating.

What do you think about the possible consequences of Nishad Singh’s cooperation with the authorities? Share your opinion on this in the comments section below.