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- SEC charged former Co-Lead Engineer of FTX, Nishad Singh, with defrauding equity investors.
- Nishad allegedly stole roughly $6 million from FTX and used it for his gain.
- U.S. Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission also announced charges against him.
Nishad Singh, a former Co-Lead Engineer for FTX, according to a recent tweet by CryptoNewsLand, has been charged by the Securities and Exchange Commission (SEC) with defrauding equity investors FTX, and the SEC brought the charges against Singh.
Per the complaint, Singh developed a software code that enabled funds belonging to FTX clients to be transferred to Alameda Research. Singh also allegedly stole roughly $6 million from FTX and used it for his gain.
The SEC is seeking an injunction against further violations of securities law, as well as a conduct-based injunction barring Singh from participating in the issuance, purchase, offer, or sale of any securities (other than for his accounts), disgorgement of his ill-gotten gains, a civil penalty, and a bar from serving as an officer or director.
Singh has agreed to a bifurcated settlement, subject to court approval, under which he will be permanently excluded from violating federal securities laws, the aforementioned conduct-based injunction, and an officer and director bar.
The court will decide whether and how much ill-gotten gains disgorgement plus prejudgment interest and a civil penalty is appropriate, as well as the length of the officer and director bar and the conduct-based injunction imposed against Singh, based on the SEC’s motion.
In addition to the SEC’s complaint against Singh, the U.S. Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission have also announced charges against him.
Notably, the statement indicates that Singh is cooperating with the SEC’s ongoing investigation. It remains to be seen what information Singh may provide to the SEC and how it may impact the investigation and any potential legal proceedings.
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