A former top employee of cryptocurrency exchange FTX, Indian-Origin Nishad Singh, is reportedly preparing to enter into a plea deal with U.S. prosecutors as they prepare to file charges against him. Singh, who was FTX’s director of engineering, is said to have played a key role in developing software used to transfer funds between FTX and Alameda and was also involved in campaign financing. His potential cooperation with prosecutors could provide valuable assistance in the criminal case against FTX’s co-founder and former CEO, Sam Bankman-Fried.
According to Bloomberg News, the U.S. Attorney’s Office for the Southern District of New York is leading the investigation, with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) reportedly planning to file charges as well. Bloomberg also reported that Singh had discussed a cooperation deal in the past, which was expected to lead to a plea deal. However, Singh was not accused of any wrongdoing at the time, whereas he now faces charges.
Singh would be the third FTX associate to enter into a plea deal if he reaches an agreement with prosecutors, following former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, who both pled guilty in December and are now cooperating with authorities against Bankman-Fried.
None of the agencies involved in the investigation have confirmed Bloomberg’s statements publicly. Still, reports from the same source suggest that Singh has been under investigation since at least January 5th, indicating that the investigation into FTX’s activities is ongoing.
FTX is a major cryptocurrency exchange, launched in 2019, and has become one of the largest and most prominent players in the industry. The exchange has been the subject of scrutiny by regulators in recent months, and this latest development is likely to attract further attention from authorities. While the exact charges against Singh and the scope of the investigation remain unclear, this case highlights the growing focus of U.S. authorities on the cryptocurrency industry and the potential legal risks that come with its rapid growth.
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