• Nishad Singh is the former Engineering Co-Leader at FTX.
  • The SEC says a former executive wrote the software Sam Bankman-Fried used to divert FTX customer funds to Alameda Research.
  • According to the SEC complaint, Singh withdrew $6 million from FTX for personal use.

The U.S. Securities and Exchange Commission (SEC) has indicted Nishad Singh, a former lead engineer at crypto exchange FTX, for participating in a scheme to deceive investors in the now-collapsed cryptocurrency trading platform.

Singh is a co-founder of FTX, along with former CEOs Sam Bankman-Fried and Gary Wang.

Singh withdrew $6 million in FTX funds for personal use

According to the SEC complaint, Singh was behind software code used to withdraw billions of FTX customer funds and divert them to cryptocurrency hedge fund Alameda Research.

Bankman-Fried and Gary Wang jointly owned Alameda, SEC says press releaseadded that Shin actively participated in the customer’s final fraud.

Singh allegedly helped the former CEO transfer “hundreds of millions of dollars” to Alameda. I knew very well that these were customer funds. A former FTX engineer has been accused of withdrawing about $6 million from FTX as the crypto exchange plummeted toward collapse. Singh used the money for personal purposes, including buying a home and donating to charity, according to the SEC complaint.

Overall, the SEC said Singh violated the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The former FTX exec has agreed to a split settlement, the agency said, and the agreement is subject to court approval.

In addition to the SEC’s claims, Singh also faces claims from the US Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission (CFTC).

By Jules

Leave a Reply