Federal authorities in the US are probing former FTX engineering director Nishad Singh, according to a Jan. 5 report from Bloomberg.
That report suggests that if Manhattan prosecutors discover that Singh was involved in FTX’s mismanagement of funds, he could be charged before the end of January. Bloomberg was unable to determine whether Singh is cooperating with authorities.
The Manhattan prosecutors mentioned by Bloomberg are implied to be members of the US Attorney’s Office for the Southern District of New York, which has handled most aspects of the FTX case until now. Two regulators — the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) — are also probing Singh as well, according to today’s report.
None of the organizations above have confirmed that they are probing Singh. Instead, Bloomberg said it has spoken to sources “familiar with the matter.”
Though no action has been taken against Singh, he has frequently been mentioned in relation to FTX’s collapse. In November, reports suggested that Singh and others knew that FTX was transferring funds to its sister company, Alameda Research. In December, FTX Digital Markets ceo-CEO Ryan Salame named Singh as one of three individuals with sufficient credentials to make those transfers.
Singh has been mentioned in various other reports as well. In November, he was identified as the recipient of a $543 million loan from Alameda. He was also named alongside Salame and former FTX CEO Sam Bankman-Fried as having made controversial political donations over the last election cycle. Additionally, inquiries into FTX’s Bahamas condominiums named Singh as a one-time resident and owner.
Reports suggest that Singh has been missing since FTX’s November bankruptcy filing, possibly motivating the probe that is rumored to be taking place now.
Singh is at least the third of Bankman-Fried’s associates to come under federal investigation. In December, former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang both reached a plea deal with authorities.
Bankman-Fried himself faces various charges due to his leadership role. His last hearing was on Jan. 3, and its trial will commence in October 2023.