Nishad Singh, the former head of engineering at FTX, will pay $3.7 million to resolve a Commodity Futures Trading Commission (CFTC) enforcement action tied to the crypto exchange’s collapse and alleged misuse of customer funds. Under a supplemental consent order, Singh must disgorge $3.7 million, is barred from trading in markets for five years, and is subject to an eight-year registration ban that prevents him from holding licensed roles in the industry, the CFTC said.
The agency said the initial and supplemental consent orders conclude its case against Singh. David Miller, the CFTC’s director of enforcement, noted that no additional restitution or civil monetary penalties were imposed at this time and said the penalties reflect Singh’s cooperation with investigators. Miller added that the consent orders account for the seriousness of the violations Singh aided and that the Commission rewards material assistance in its investigations.
Singh’s attorneys said they were encouraged that the CFTC recognized his limited role in the underlying conduct and his substantial cooperation. The CFTC had accused Singh of personally misappropriating millions and charged him in February 2023 with fraud by misappropriation and with aiding and abetting fraud allegedly committed by former FTX CEO Sam Bankman‑Fried. Singh entered a consent order in April 2023, was found liable on those charges, and agreed to cooperate with authorities. Regulators had originally sought a broader slate of penalties, including restitution, civil fines, 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 matter was settled in December, resulting in an eight‑year industry ban. After FTX’s November 2022 bankruptcy—which wiped out billions in market liquidity and triggered widespread fraud allegations—U.S. prosecutors indicted Singh and several colleagues on counts including fraud and campaign finance violations. Facing potential decades in prison, Singh cooperated with prosecutors and testified against Sam Bankman‑Fried; he ultimately received time served and three years of supervised release.
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