If federal prosecutors find any evidence against Nishad Singh, the man can receive charges this month.
US authorities, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and prosecutors, are reportedly investigating former FTX engineering director Nishad Singh’s role in the FTX's alleged fraud scheme.
According to the Bloomberg report shared on January 5th, the investigation is a part of the SEC's, CFTC's and prosecutor's goal to look into former FTX CEO Sam Bankman-Fried’s inner circle.
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A person familiar with the matter revealed to Bloomberg that if federal prosecutors find any ties with the alleged "multilayer scheme at FTX and trading firm Alameda Research," Nishad Singh can be charged as soon as this month.
US authorities haven’t accused Singh of doing anything wrong. It is unclear whether the former FTX engineering director is collaborating with US officials.
However, it is believed that Singh was a member of the “wirefraud” group chat, together with Sam Bankman-Fried, former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang. In the chat, the group allegedly discussed financial ties between Alameda Research and FTX. Sam Bankman-Fried denied being a part of this group.
The mastermind behind FTX, Sam Bankman-Fried, has recently pleaded not guilty to all criminal charges. It is worth noting that the man is accused of wire fraud, securities fraud and violating campaign finance laws. The man is facing eight criminal charges, which could put Bankman-Fried behind bars for 115 years.
On the other hand, on December 22nd, Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to federal fraud charges. Caroline Ellison was expected to make a plea deal with the Office of the United States Attorney for the Southern District of New York.
On January 3rd hearing, Judge Lewis A. Kaplan scheduled a tentative trial date of October 2nd, when Sam Bankman-Fried’s criminal trial will start.
On January 4th, the US Attorney's Office for the Southern District of New York formed a special FTX Task Force. The Task Force will work on tracing and recovering customer funds and handle various FTX-related investigations.