Former FTX director Nishad Singh reportedly pleaded guilty to fraud charges

Former engineering director at FTX, Nishad Singh, is expected to plead guilty to fraud charges charged by US prosecutors. It is investigating the now bankrupt FTX, as reported by Reuters on Tuesday. 28 February

During a hearing in Manhattan federal court, Singh’s attorneys announced that his client had agreed to plead guilty to one count of electronic fraud, conspiracy to commit electronic fraud against a client. One FTX , and one more commodity fraud conspiracy.

According to CNBC, Singh was a close friend of the younger brother of Bankman-Fried high school and became Director of Engineering at FTX in 2019 and 2020. Singh is accused of tampering with FTX’s software to allow Alameda to automatically avoid asset sales when it loses too much borrowed money.

This exemption allows Alameda to continue borrowing from FTX, regardless of the amount of collateral against the loan. which the US Securities and Exchange Commission Allegedly, this tampering gave Alameda an “unlimited line of credit” at FTX, and that the billions of dollars that FTX would borrow from Alameda over the next two years came from FTX customer funds.

In December 2022, both former FTX and Alameda Research executives Caroline Ellison and Gary Wang pleaded guilty to fraud charges and cooperated with the Justice Department investigation into Sam. Bankman-Fried, former CEO of FTX.

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