Civil charges were announced against former FTX engineering director Nishad Singh on February 28, the same day he pleaded guilty to three counts of fraud in Manhattan district court. Both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have filed charges against Singh.
Singh pleaded guilty in the United States Court for the Southern District of New York to one count of wire fraud, one count of conspiracy to commit wire fraud against FTX customers and one count of conspiracy to commit commodity fraud, after allegedly reaching an agreement with the prosecution.
The CFTC said it charges Singh with misappropriation fraud and complicity in fraud committed by Samuel Bankman-Fried, FTX and Alameda Research. The SEC complaint accuses Singh of violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. According to the SEC:
“Singh also knew or was reckless in not knowing that, more broadly, Bankman-Fried often operated the companies [FTX y Alameda Research] without regard to responsible corporate controls and appropriate conduct.”
Singh did not contest the CFTC’s charges and has agreed to file a proposed consent order, the agency reported. According to the SEC, Singh has agreed to a split settlement that places a number of conditions on him, subject to court approval. “You will be permanently barred from violating federal securities laws, you will be placed in injunction based on the conduct described above, and you will be barred from acting as a manager,” the SEC stated.
The court will also decide whether you are subject to “return of ill-gotten gains plus late-payment interest and/or a civil penalty.”
â° JUST IN: Former FTX execs Nishad Singh pleaded guilty to criminal charges today in a New York court.
He said, “I am unbelievably sorry for my role in all of this.” #Crypto #FTX pic.twitter.com/TcVHexubgR
— Newbie Truth (@Newbie_Truth) February 28, 2023
Sam Bankman-Fried, former CEO of FTX, Caroline Ellison, former CEO of Alameda Research, and Gary Wang, former CTO of FTX, have also been indicted by the SEC and CFTC. Ellison and Wang settled with the SEC, but agreed to let the CFTC cases stand. The SEC and CFTC cases against Bankman-Fried have been stayed pending the conclusion of their criminal trial.
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