FTX: Nishad Singh pleads guilty to criminal charges
- Nishad Singh pleads guilty to six criminal counts
- Singh was accused of creating the code that let Alameda borrow an unlimited amount of funds
Nishad Singh, the former director of engineering of bankrupt crypto exchange – FTX, pleads guilty to United States criminal charges. As per the disclosure made at a court hearing today, Sing admitted being guilty to six criminal charges, Reuters reported. The charges include wire fraud, conspiracy to commit fraud, conspiracy to commit money laundering, and conspiracy to defraud the United States by violating election financing laws.
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Singh is the third person in Sam Bankman-Fried’s (SBF) inner circle to plead guilty to criminal charges. And, he was also in the headlines for contributing nearly $8 million to Democrats during the 2022 election. Out of this, $1.1 million was donated to LGBTQ Victory Fund in July 2022.
And, SBF was recently accused of making illegal donations through staw donors and had directed an FTX executive to contribute over $21 million to a pro-LGBTQ group. The executive’s name, however, was not revealed in the recent charges and was identified as CC-1.
Prior to Singh, Caroline Ellison – former CEO of Alameda and Gary Wang – co-founder of FTX admitted to their crimes. They plead guilty to committing fraud and contributing to the collapse of the crypto exchange. And, Ellison alone was accused of seven counts, altogether carrying 110 years in prison time.
However, the former Alameda CEO stands a chance to escape the sentencing in exchange for cooperating with law enforcement agencies This is according to a plea deal between her and the Office of the United States Attorney for the Southern District of New York. While it gives Ellison a cover from all seven counts, the deal does not extend protection to any criminal tax violations.
Nishad Singh was accused of altering FTX’s code in order to allow Alameda to borrow unlimited funds from the crypto exchange. On the code tweak, he had also commented, “be extra careful not to liquidate”.
Moreover, the former director’s decision comes days after reports of a plea deal between him and the U.S. Attorney’s Office for the Southern District of New York surfaced. While the deal remains unknown, Singh is expected to get away with the charges in exchange for cooperating with authorities.