Nishad Singh, Former FTX Technical Director Pleads Guilty of Fraud, Money Laundering

According to the U.S Securities and Exchange Commission (SEC) lawsuit, Singh had created a software code that enabled FTX customers’ funds to be transferred to Alameda Research, a sister trading company owned by Sam Bankman-Fried (SBF).

On the other hand, the FTX executive assured investors that FTX is a secure crypto-trading platform with advanced mitigation steps to protect its customers’ assets. Alameda Research is merely another customer without an exclusive right.

FTX lost more than $ 8 million in customers’ funds inappropriately used to finance the business operation of Alameda Research.

SEC lawsuit accused Singh of being active in deceiving FTX investors. Singh had known that the claim (regarding Alameda) was misleading.

Bankman-Fried is facing 12 criminal lawsuits for his role in the biggest financial fraud in history.

Previously, one of the FTX co-founders Gary Wang, and former Alameda Research hedge fund chief Caroline Ellison pleaded guilty last year. They are cooperating with federal prosecutors to stand up against Bankman-Fried.

U.S. federal Prosecutors accused SBF and his former colleagues of misusing their customers’ accounts in the FTX platform to support Alameda Research operations, enriching themselves, conducting a venture investment, and trying to buy influence by donating to U.S politicians.

FTX was once one of the most promising crypto exchange firms after loaning two crypto firms, BlockFI and Voyager, following the crypto market crash in 2022.

Previously in 2021, FTX stepped in to assist Japanese crypto exchange Liquid after the latter suffered a $100 million dollar hack.