Nishad Singh, the former head of engineering at FTX, will pay $3.7 million to resolve his case with the US Commodity Futures Trading Commission (CFTC) over his role in the collapse of the crypto exchange and the misappropriation of user funds. Under a supplemental consent order, Singh must disgorge $3.7 million and faces a five-year ban on trading in markets and an eight-year registration ban that prevents him from obtaining a license to operate in the sector, the CFTC said.
“The initial consent order and supplemental consent order resolve the CFTC’s enforcement action against Singh,” the agency said. David Miller, the CFTC’s director of enforcement, said no additional restitution or civil monetary penalties were imposed at this time, noting the penalties reflect Singh’s cooperation with authorities. “The defendant engaged in, and aided, significant violations of the Act and CFTC regulations as the former FTX head of engineering, and the consent orders reflect the severity of these violations,” Miller added. He also said the resolution reflects the Commission’s commitment to rewarding material assistance in Division investigations.
Attorneys for Singh said they were pleased the CFTC recognized his limited role in the underlying conduct and his extensive cooperation. The CFTC had accused Singh of personally misappropriating millions and charged him in February 2023 with fraud by misappropriation and aiding and abetting fraud committed by former FTX CEO Sam Bankman-Fried. In April 2023, Singh entered into a consent order, was found liable for the charges and agreed to cooperate with investigators. The regulator originally sought a range of penalties, including restitution, civil monetary penalties and permanent bans.
Separately, the Securities and Exchange Commission charged Singh in February 2023 with misusing customer funds and fraud by misappropriation under securities laws; that case was settled in December with Singh receiving an eight-year industry ban. After FTX’s November 2022 bankruptcy—an event that erased billions in market liquidity and prompted fraud allegations against its leadership—U.S. prosecutors indicted Singh and several colleagues on charges including fraud and campaign finance violations. Singh faced decades in prison if convicted, but after testifying against Sam Bankman-Fried and cooperating with prosecutors he received time served and three years of supervised release.
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