Nishad Singh, the former director of engineering at FTX, has pleaded guilty to fraud and conspiracy counts. Like previous witnesses, Caroline Ellison and Gary Wang, Singh has agreed to cooperate with prosecutors. This development is part of the ongoing investigation into FTX, a cryptocurrency exchange co-founded by Sam Bankman-Fried.
Singh revealed that he held the third-largest equity stake in FTX. He received a $543 million loan from Alameda Research, according to bankruptcy filings. His annual salary was $200,000, and he collected approximately $1 million in bonuses annually through 2020.
Funds used for political donations, venture investments and real estate purchases
In September 2022, Singh “learned of a hole” in FTX’s finances. He noticed around $8 billion missing from Bankman-Fried’s company. The missing funds were used for a variety of venture investments, political donations, real estate purchases, and other expenditures.
The missing $8 billion had been siphoned by Alameda to cover its debts and issue loans to Bankman-Fried and others, according to prosecutors. Despite these revelations, Singh approved transactions that he “implicitly” knew had to have come from user deposits.
Singh’s guilty plea and cooperation with prosecutors mark a significant turn in the investigation into FTX. His testimony could provide crucial insights into the alleged financial misconduct at FTX. As the legal proceedings continue, further details about the case are expected to emerge.
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