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SEC Accuses Former FTX Executive of Defrauding Investors

SEC Accuses Former FTX Executive of Defrauding Investors

Nishad Singh, who has previously served as CTO of crypto exchange FTX, was “an active participant” in the plan to defraud the platform’s customers, according to the SEC.

Singh developed the platform code that allowed sister company Alameda Research to use FTX user funds.

The former CEO of the company, Sam Bankman-Fried, has assured that the exchange is safe due to complex risk mitigation mechanisms, and Alameda was just one of the clients. The former technical lead knew, or should have known, that the claims were misleading, the paper said.

The regulator has also accused Singh of organizing “a series of fictitious transfers within a group of firms and creating false documentation for auditors.” He took this step to satisfy the request of the SBF to show revenue of $1 billion at the end of 2021, to which $50 million was missing.

Singh was reportedly involved in transferring hundreds of millions more dollars in FTX client funds to Alameda accounts for additional venture capital investments and loans.