Former FTX Director Pleads Guilty to Fraud Charges
Nishad Singh, a former engineering director at FTX, pleaded guilty to multiple charges related to fraud in a Manhattan court on February 28, 2023.
Singh’s guilty plea includes six charges, such as wire fraud and conspiracies to commit wire fraud and money laundering.
According to documents viewed by Reuters, Singh instructed FTX programmers not to liquidate loan positions of Alameda Research, an affiliate of FTX, by leaving a comment in FTX’s code.
The comment would have allowed Alameda to continue borrowing from FTX, even if the market maker’s loans became undercollateralized. Prosecutors have mentioned the alleged code manipulation in their latest indictment against FTX’s co-founder, Sam Bankman-Fried, who is currently facing criminal charges.
READ MORE: Bitcoin: Institutional Investors Short BTC – Here’s Why
Singh, who may have taken part in the code manipulation, could face up to 75 years in jail if convicted, including up to 30 years for wire fraud and an additional 40 years for the money laundering and wire fraud conspiracy charges.
FTX’s former CTO, Gary Wang, and Alameda’s former co-CEO, Caroline Ellison, have also pleaded guilty to fraud-related charges and could receive reduced sentences for assisting prosecutors in their case against Bankman-Fried.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
