With investigation continuing around FTX collapse, Nishad Singh, former engineering chief, FTX, followed the lead of Gary Wang and Caroline Ellison, former executives, FTX and Alameda Research, reportedly made a deal with federal prosecutors, as reported by Cointelegraph.
According to Cointelegraph, Singh was part of a proffer session at the United States Attorney’s office for the Southern District of New York for prosecutors. It is believed that assessment took place of whether Singh holds information to offer in the lawsuit against Sam Bankman-Fried, founder, FTX. Reportedly, prosecutors carry an interest around Singh’s insight around FTX’s political donations. Reports suggest that Singh made political donations over the years and could enable prosecutors get better knowledge around FTX’s political donations.
On the basis of information by Cointelegraph, post Wang and Ellison entering pleas, Damian Williams, a US attorney, issued a warning in December, 2022, for those who were involved in the misconduct at FTX and Alameda, saying,“come see us before we come to see you.” On January 5, 2023, it was reported that United States Securities and Exchange Commission (SEC) has undertaken investigation around Singh for potentially having involvement in defrauding FTX investors and users.
Moreover, Cointelegraph noted that this development happened after an update in December, 2022, that politicians and news organisations reportedly planned to return $6.6 million in donations from FTX. In November, 2022, it was unveiled that Alameda loaned $543 million to Singh.
(With insights from Cointelegraph)