Investing

FTX's Former Chief Engineer Preparing to Enter a Guilty Plea For Fraud

Tim Fries

Published: February 20, 2023 10:24 pm

Last Updated: February 22, 2023 12:46 pm

According to a report from Friday, FTX’s former chief engineer Nishad Singh is preparing to enter a guilty plea to fraud charges. Singh has been working out an agreement with prosecutors since at least January and his plea could help further weaken SBF’s defense.

Nishad Singh Set to Become the Latest FTX Executive to Plead Guilty

Nishad Singh, who served as the director of engineering both for FTX and Alameda Research, is reportedly nearing the end of his negotiations with Manhattan prosecutors. Singh, along with Caroline Ellison and Gary Wang, was a member of Sam Bankman-Fried’d inner circle and one of his Bahamas flatmates.

The former chief engineer is facing fraud charges for his role in the collapsed crypto empire, though prosecutors are reportedly waiting for an agreement to be made before filing them. Singh is allegedly preparing to enter a guilty plea—a move that could further isolate Sam Bankman-Fried as he would then remain the only major player in the FTX saga to maintain his innocence.

Reports on an investigation of Nishad Singh initially emerged in early January, shortly after SBF made his first US court appearance. At the time, it was revealed that the SDNY, the SEC, and the SEC are all looking into the former chief engineer’s activities.

Sam Bankman-Fried Increasingly Isonalted, May be Sent Back to Jail

While FTX’s former CEO saw a lull in law enforcement activity after his exchange went bankrupt on November 11th calling on many to question if he will ever face consequences, US authorities turned the heat up on him in mid-December. Near the end of 2022, SBF was arrested in the Bahamas and a slew of charges, civil and criminal, were filed against him by the DoJ, the SEC, and the CFTC.

The bad news for the fallen billionaire didn’t end then, as, around the same time, it was revealed that two of his close associates, Gary Wang and Caroline Ellison, chose to plead guilty and cooperate with the authorities. At the time, Wang’s decision was reported as particularly problematic for Bankman-Fried due to their long-standing relationship.

More recently, SBF has been facing increased pressure over his use of the internet since he was released on a $250 million bail bond. In recent weeks, FTX’s former CEO has been accused of trying to influence witnesses and his use of VPNs has seen him brought back to court. On Thursday, February 16th, the Judge even threatened to revoke his bail.

This article originally appeared on The Tokenist