NEW YORK: Nishad Singha 27-year-old engineer of Indian origin, who was previously co-chief engineer of FTP extension Trading Ltd, has admitted to the allegations of goods fraud.
Singh is facing federal charges related to a longstanding scheme to defraud equity investors in FTX, the cryptocurrency trading platform he co-founded with Samuel Bankman-Fried and Gary Wang.
Bankman-Fried, accused of orchestrating the scheme to defraud equity investors in FTX in December last year, owns a crypto hedge fund called Alameda Research, which Singh’s software code allowed to divert funds from FTX clients.
Singh withdrew approximately $6 million from FTX for personal use and expenses, including the purchase of a multi-million dollar home and donations to charitable causes. He agreed to a settlement and is cooperating with ongoing investigations by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC is seeking an injunction against future securities law violations and civil penalties, while the CFTC is charging Singh with embezzlement fraud and aiding and abetting fraud. SEC Chairman Gary Gensler has called on crypto platforms to comply with the laws to prevent similar fraud in the future.
Singh is facing federal charges related to a longstanding scheme to defraud equity investors in FTX, the cryptocurrency trading platform he co-founded with Samuel Bankman-Fried and Gary Wang.
Bankman-Fried, accused of orchestrating the scheme to defraud equity investors in FTX in December last year, owns a crypto hedge fund called Alameda Research, which Singh’s software code allowed to divert funds from FTX clients.
Singh withdrew approximately $6 million from FTX for personal use and expenses, including the purchase of a multi-million dollar home and donations to charitable causes. He agreed to a settlement and is cooperating with ongoing investigations by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC is seeking an injunction against future securities law violations and civil penalties, while the CFTC is charging Singh with embezzlement fraud and aiding and abetting fraud. SEC Chairman Gary Gensler has called on crypto platforms to comply with the laws to prevent similar fraud in the future.
