- Former FTX head of engineering Nishad Singh settled a Commodity Futures Trading Commission (CFTC) case for $3.7 million and received multiple industry bans.
- The CFTC stated the penalties reflect the severity of his violations but also his material cooperation with the investigation.
- Singh pleaded guilty to fraud charges in multiple cases after FTX’s 2022 collapse and testified against former CEO Sam Bankman-Fried.
Nishad Singh, the former head of engineering at the collapsed FTX crypto exchange, will pay $3.7 million to the Commodity Futures Trading Commission (CFTC) to resolve allegations of misappropriating user funds. The settlement, announced on Wednesday, also includes a five-year trading ban and an eight-year registration prohibition, as the regulator stated.
Consequently, FTX’s bankruptcy in November 2022 erased billions in market liquidity and triggered widespread fraud accusations against its leadership. The CFTC initially charged Singh with fraud and aiding Sam Bankman-Fried’s misconduct in February 2023.
However, the regulator ruled out additional financial penalties due to Singh’s cooperation with authorities. David Miller, the CFTC’s enforcement director, said, “this resolution also reflects the Commission’s commitment to rewarding and incentivizing material assistance.”
Meanwhile, Singh’s attorneys noted he was “grateful this latest matter was at an end,” according to Bloomberg. He had already pleaded guilty and agreed to cooperate with the CFTC’s investigation in April 2023.
Furthermore, the Securities and Exchange Commission settled a separate fraud case against Singh in December, resulting in an eight-year industry ban. In the related criminal case, he received a sentence of time served after testifying against former CEO Bankman-Fried.
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