• The SEC, CFTC, and SDNY are all investigating Nishad Singh’s role in the collapse of FTX.
• Singh was the Director of Engineering and had the code to transfer FTX funds.
• He also had a 7.8% stake in the exchange with a $500 million loan from Alameda and was an active political donor.
The United States government has finally opened an investigation into the activities of Nishad Singh, the missing former executive of the now-defunct FTX exchange. The investigations are being conducted by the Securities and Exchanges Commission (SEC), Commodities and Futures Trading Commission (CFTC), and the Southern District of New York (SDNY).
Singh was the Director of Engineering at FTX and was responsible for the code to transfer funds from the exchange. He also owned a 7.8% stake in the exchange, and had taken a $500 million loan from Alameda. In addition, he was an active political donor and had poured nearly $8 million into Democrats for the 2022 elections.
The investigations into his activities began shortly after FTX declared bankruptcy. The government is looking into whether Singh was involved in a multi-year scheme to defraud investors. If he is found to have played a role in the scheme, he could face criminal charges by the end of this month.
This comes right after former CEO Sam Bankman-Fried was also charged with eight counts of criminal and electoral fraud. Bankman-Fried has pleaded not guilty to all charges.
The investigations into Singh’s role in FTX’s collapse are ongoing, and the outcome will determine his fate. The outcome of the investigations could also have a major impact on the crypto industry as a whole, as it will set a precedent for how such cases are handled in the future.