0:00
0:00
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
US authorities are now scrutinizing former FTX engineer Nishad Singh, according to a Bloomberg report published Thursday.
US authorities are upping the pressure on Sam Bankman-Fried's inner circle, according to Bloomberg.
They're currently scrutinizing former FTX engineer Nishad Singh, people familiar with the matter said.
Singh was childhood friends with Bankman-Fried's younger brother Gabe – and was nicknamed FTX's "King of kindness".
Prosecutors are scrutinizing Singh's role in what they have called a years-long "fraud of epic proportions" and could charge him by the end of the month, people familiar with the matter said.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have also reportedly launched investigations into Singh, a former director of engineering for FTX who held a 7.8% stake in the bankrupt crypto exchange.
Singh first met Sam Bankman-Fried through the now-disgraced FTX founder's younger brother Gabe, who he was high school friends with.
He was an engineer for Facebook before the older Bankman-Fried hired him to work for FTX and Alameda, according to a LinkedIn page that has subsequently been taken down.
Bankman-Fried said in November that Singh felt "ashamed and guilty" after FTX's bankruptcy filings revealed it had lost more than $8 billion of customers' money, according to private Twitter messages published by Vox.
"[Former FTX chief technology officer] Gary [Wang] is scared, Nishad is ashamed and guilty," Bankman-Fried said.
"It hit [Singh] hard. I mean it hit all of us hard. But it hit him HARD," he added.
In November, the Wall Street Journal identified Singh, Bankman-Fried, Caroline Ellison, and Wang as the four FTX executives who knew that the exchange was using customer funds to prop up its sister trading firm Alameda Research.
Bankman-Fried entered a plea of not guilty to eight criminal counts including wire fraud and conspiracy to commit money laundering Tuesday, while Ellison and Wang both pleaded guilty to similar charges on December 22.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
