Nishad Singh, a top Bankman-Fried associate, close to plea deal in FTX probe

Nishad Singh is negotiating a deal with Manhattan prosecutors as they prepare to file fraud charges against him, according to people familiar with the matter. Such a settlement could include cooperating with authorities and further isolating Bankman-Fried, who has pleaded not guilty to the eight-count indictment and awaits trial. The deal with Singh is yet to be finalised.

The Manhattan federal prosecutors office declined to comment, as did Andrew D. Goldstein, Singh’s attorney. Two of Bankman-Fried’s other former top aides, Gary Wang and Carolyn Ellison, pleaded guilty last year to charges over their roles at FTX and Alameda Research and are working with prosecutors. A representative for Bankman-Fried declined to comment.

Thing Forward trading The commission and the Securities and Exchange Commission, top US market regulators, are planning to prosecute Singh over his role in the alleged scheme, said one of the people, who declined to discuss the developments which have not been made public. . , Representatives for the CFTC and SEC declined to comment.

The ongoing wide-ranging investigation into the spectacular crash of FTX in November is one of the most high-profile corporate crime cases in US history. Authorities allege Bankman-Fried orchestrated a year-long scamThat included misleading investors and misappropriating billions of dollars of FTX customer funds for personal expenses and risky bets at Alameda, a trading firm affiliated with the crypto exchange.

As Head of Engineering, Singh played a major role in day-to-day operations at FTX. He also had a close personal relationship with Bankman-Fried, who lived with him in a Bahamas penthouse. Singh was hired at Alameda in 2017, before founding FTX two years later with Wang and Bankman-Fried. Singh helped write the software on which the exchange is built and contributed to the launch of FTX US in 2020.

If he were to cooperate with authorities, Singh could potentially provide insight into the campaign finance side of FTX, a dynamic that US officials are watching. The indictment of Bankman-Fried accused her of violating campaign finance laws.

According to the filing, Singh has given more than $9.3 million to Democratic candidates and committees since 2020. In the last election cycle, he spent $8 million alone. Among the biggest recipients was Mind the Gap, a political action committee founded by Bankman-Fried’s mother, which received $1 million from Singh in April 2021. According to bankruptcy court filings, Singh also received multimillion-dollar loans from Alameda Research.

In January, Singh participated in a so-called proffer session with Manhattan prosecutors. At such meetings, individuals are typically given a limited immunity to share what they know with prosecutors. A PROFESSOR session does not automatically lead to a collaboration agreement.

The text of this story is published from a wire agency feed without any modification.