FTX’s former director of engineering is reportedly planning to plead guilty to fraud charges related to the crypto exchange platform’s high-profile downfall.
According to a new report by Bloomberg, Nishad Singh is currently working out a plea deal with prosecutors that would have him plead guilty to fraud charges and possibly join forces with authorities against Sam Bankman-Fried, the firm’s former CEO and disgraced founder.
If Singh were to ink a deal with the prosecutors, he would be the third member of Bankman-Fried’s inner circle who cut deals with authorities in the criminal case against the former crypto billionaire. Last year, former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty and agreed to collaborate with prosecutors.
Singh, a close friend of Bankman-Fried who had a major role in FTX’s day-to-day operations, helped develop the software the exchange was built on, according to the report.
Prosecutors are hoping Singh could shed light on FTX’s alleged illegal campaign contributions to US political candidates and how they relate to Bankman-Fried, per the report.
Bankman-Fried is accused of six counts of fraud, one count of conspiracy to commit money laundering and one additional count of conspiracy to defraud the United States and campaign finance laws.
FTX initially filed for bankruptcy last year after its native token collapsed, forcing the crypto exchange to halt customer withdrawals. Bankman-Fried is currently out on bail. If convicted, he faces over 100 years in prison.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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