According to Bloomberg, federal authorities in the U.S. are investigating former FTX engineering director Nishad Singh. If prosecutors discover that Singh was involved in mismanaging funds at FTX, he could potentially face charges by the end of January.
It is unclear at this time whether Singh is cooperating with authorities.
FTX Investigation Takes New Turn
Per Bloomberg, Manhattan prosecutors, who are likely members of the U.S. Attorney’s Office for the Southern District of New York, are investigating former FTX engineering director Nishad Singh.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are also reportedly probing Singh. The U.S. Attorney’s Office for the Southern District of New York has handled most aspects of the FTX case until now.
According to sources familiar with the matter, Bloomberg has reported that none of the aforementioned organizations have confirmed that they are investigating Singh. However, Singh has frequently been linked to the collapse of FTX.
In November, it was reported that Singh and others were aware of FTX transferring funds to its sister company, Alameda Research. In December, Ryan Salame, CEO of FTX Digital Markets, named Singh as one of three individuals who had the necessary credentials to make those transfers. Despite these mentions, no action has been taken against Singh.
Also read:What Role Did Singh Play?
Nishad Singh has been mentioned in several other reports as well. In November, it was revealed that he received a $543 million loan from Alameda. He was also named along with Salame and former FTX CEO Sam Bankman-Fried as having made questionable political donations during the last election cycle.
Investigations into FTX’s Bahamas condominiums also showed that Singh was a former resident and owner.There are rumors that a probe is currently underway, possibly due to Singh’s disappearance since FTX’s bankruptcy filing in November.
Nishad Singh is the third associate of Sam Bankman-Fried to be investigated by federal authorities. Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang both reached plea agreements with authorities in December.
Bankman-Fried is facing several charges due to his role as leader. His most recent hearing was on Jan. 3 and his trial is set to begin in October 2023.
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