FTX co-founder Nishad Singh pleads guilty to fraud and conspiracy charges

Nishad Singh, a co-founder of the collapsed cryptocurrency exchange, pleaded guilty to US federal fraud and conspiracy charges. Singh, who is director of engineering at FTX, is the third member of Sam Bankman-Fried’s inner circle to agree to cooperate with prosecutors in the case against him. Former executives Caroline Ellison and Zixiao “Gary” Wang previously pleaded guilty to fraud charges.

Singh pleaded guilty to six criminal counts, including wire fraud and conspiracy to defraud the US by violating campaign finance laws. He agreed to eliminate the profits of his actions, as reports. Bankruptcy filings show Singh is $543 million in debt from Alameda.

Singh admitted to making illegal donations to political candidates and PACs under his name using funds from Alameda Research (FTX’s sibling hedge fund and crypto trading firm). He claimed that the donations were intended to strengthen the political influence of FTX and Bankman-Fried (aka SBF), according to . Singh added that he agrees with the principles of what he donated but he did not choose the candidates. , he contributed $8 million to Democratic PACs and campaigns during the 2022 election cycle.

In addition, Singh said he learned in mid-2022 that Alameda had borrowed billions of dollars in customer funds from FTX. It emerged in September that Alameda was unable to pay those funds. Singh also admitted that he falsified FTX’s earnings at the behest of the SBF to make the company more palatable to investors.

The SBF now faces 12 criminal charges following an indictment detailing four additional charges last week. Among other things, he is accused of stealing billions of dollars in FTX customer funds and misleading investors and lenders. Specifically, due to Singh’s request, the charges include alleged violations of federal campaign finance laws by donating to a super PAC under the names of the two executives. SBF, who was arrested and extradited from the Bahamas in December, pleaded not guilty to the charges. His trial is set for October.

The same day Singh entered his guilty plea, civil complaints were filed against him. The agencies said Singh is cooperating with the SEC’s ongoing investigation and that he has agreed to settle with the CFTC.

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