The latest developments in the FTX case suggest pressure is mounting on members of Sam Bankman-Fried’s inner circle. Nishad Singh reportedly reached an agreement with Manhattan prosecutors to plead guilty to fraud charges. Could this involve cooperation with the authorities and mounting the pressure on Bankman-Fried ?
The FTX Affair: The Empire’s Decline Continues
The FTX scandal continues to cause growing friction. According to a source familiar with the investigation, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are planning to prosecute Nishad Singh for his alleged role in the scam orchestrated by Sam Bankman-Fried.
This decision comes after two former partners of Bankman-Fried, Gary Wang and Caroline Ellisonpleaded guilty to charges related to their stints at FTX and Alameda Research last year.
Singh’s role as head of engineering for FTX was crucial to the day-to-day running of the business. He also had a close personal relationship with Bankman-Fried, with whom he shared a condominium in the Bahamas.
As of 2017, Singh was employed by Alameda; two years later, he co-founded FTX with Wang and Bankman-Fried. Singh was also involved in the development of the underlying trading platform.
Singh: Embedded in the FTX fraud?
The US government is closely monitoring FTX’s campaign finance, and if Mr. Singh cooperates with the authorities, they may learn more about this trend. In fact, Fried’s indictment alleged that he violated election finance laws.
For Democratic candidates and committees, Mr. Singh said gave more than $9.3 million since 2020, according to Bloomberg. Eight million dollars of his own money was spent in the last election cycle.
To take just one example, in April 2021, Singh donated $1 million to Mind The Gap, a political action committee created by Bankman’s mother. Bankruptcy court filings reveal that Singh also received loans from Alameda Research totaling tens of millions of dollars.
Singh met with Manhattan prosecutors for a bidding session last January. Participants in these meetings are often granted limited immunity in exchange for disclosing information to prosecutors. However, a “bidding session” does not always result in the conclusion of a cooperation agreement.
Will FTX quickly recover the funds that SBF has thrown out the window? The end of the tunnel seems more and more distant as time passes.
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