- US authorities investigating FTX’s former chief engineer, Nishad Singh.
- Nishad Singh has reportedly borrowed $543 million from Alameda.
The demise of FTX is still making headlines, even in 2023. The collapse of one of the leading cryptocurrency exchanges has resulted in a significant fall in the global crypto industry. Since then, a series of court hearings have been ongoing against FTX’s CEO, Sam Bankman-Fried, and affiliated personnel of the exchange. Now, the U.S. authorities are expanding their investigation toward Nishad Singh, the former engineering chief at FTX.
In light of FTX’s massive impact on the crypto domain, it is not surprising that the authorities are investigating Bankman-Fried’s inner circle. Recently, Sam Bankman Fried appeared in court and declined some of the allegations leveled against him. Following this, Caroline Ellison, CEO of Alameda Research, and Gary Wang, former CTO of FTX, both confessed guilt in connection with the fraud claims.
Authorities Turn Towards Nishad Singh
According to a recent report from Bloomberg, U.S. authorities are deepening their inquiry into Nishad Singh. He is not currently facing any criminal charges for his behavior. However, Singh is among the alleged fraudsters, along with Ellison, SBF, and Wang, who reportedly discussed the illegal financial relationships between FTX and Alameda Research, FTX’s sister crypto trading platform. During that time, Singh worked at the exchange as an engineering chief.
The Bloomberg report says Singh borrowed $543 million from Alameda Research. Also, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are both investigating Nishad Singh.
Moreover, Nishad Singh might face prosecution as early as this month. In the investigation, Ellison stated that Alameda has access to a borrowing facility through FTX from 2019 to 2022. The next hearing in the case is scheduled for January 11. Based on the bankruptcy court filing, Alameda loaned $1 billion to Sam Bankman-Fired and $543 million to Singh.