A former high-ranking member of Sam Bankman-Fried’s inner circle is close to finalizing a plea deal with New York prosecutors over his involvement in the alleged fraud perpetrated through cryptocurrency exchange FTX. According to anonymous sources familiar with the matter, Nishad Singh, the former director of engineering at FTX, is negotiating the agreement.
Anonymous sources say ex-FTX engineer close to striking plea deal, Singh could be crucial witness
On Friday, Bloomberg reporter Allyson Versprille reported that Nishad Singh, a former FTX engineering director, is in the process of negotiating a plea deal with federal prosecutors in Manhattan. He is the third person from Bankman-Fried’s inner circle to face charges, after former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang both pleaded guilty to charges related to the multi-year fraud. FTX has been in operation since 2019.
Anonymous sources informed Versprille that the agreement with Singh has yet to be finalized. The office of the Southern District of New York (SDNY) prosecutor declined to comment on the alleged deal. Versprille also noted that a representative for Bankman-Fried declined to make a statement. If Singh cooperates with authorities, it could be a major blow to the former FTX CEO, as Wang and Ellison are already working with law enforcement.
Bankman-Fried is due to stand trial on October 3, 2023. Prosecutors had sought to restrict his use of certain digital devices. The reason for the prosecution’s motion to limit certain digital devices is that Bankman-Fried was found to have been using a VPN in January and February 2023. While the former FTX executive has been barred from using encrypted messaging services such as Signal by the court, there has been no solution to the problem of restricting the use of certain types of electronic devices, such as VPNs.
Bankman-Fried faces over 100 years in prison for the crimes he is accused of, and has pleaded guilty to each of the eight charges. On April 8, a FTX cofounder was indicted by a federal grand jury in Manhattan, with SDNY prosecutor Damian Williams declaring that he was charged “with fraud, money laundering, and campaign finance crimes.” Singh was originally employed by FTX, holding a pivotal engineering and infrastructure position at Alameda Research in 2017. Two years later, Singh was working alongside Bankman-Fried as one of FTX’s top lieutenants.
If Singh makes a deal and pleads guilty, he would be the third of Bankman-Fried’s to do so. It is unclear if there are other FTX and Alameda employees working with federal prosecutors. SDNY’s lead prosecutor, Williams, has spoken twice about the fact that if someone has done a part in FTX’s collapse and hasn’t come forward, they should do so before authorities come knocking. “If you engaged in misconduct at FTX or Alameda, now is the time to come forward,” Williams said after revealing that Wang and Ellison had cooperated.
