Nishad Singh, former head of engineering at the collapsed crypto exchange FTX, will pay $3.7 million to settle a US commodities regulator case. The settlement imposes trading and registration bans and resolves his alleged role in the fraud that led to FTX’s 2022 bankruptcy.
Nishad Singh, the former head of engineering at FTX, will pay $3.7 million to resolve his case with the US commodities regulator. The resolution follows his alleged role in the collapse of the crypto exchange and the misappropriation of user funds.
The supplemental consent order requires Singh to pay a disgorgement of $3.7 million. It also imposes a five-year trading ban and an eight-year registration ban, blocking him from obtaining a license to operate in the sector, stated the US Commodity Futures Trading Commission (CFTC). “The initial consent order and supplemental consent order resolve the CFTC’s enforcement action against Singh,” it added.
David Miller, the CFTC’s director of enforcement, ruled out additional restitution or civil monetary penalties for now. He said the current 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 said. “But this resolution also reflects the Commission’s commitment to rewarding and incentivizing material assistance in Division investigations,” he added.
The CFTC had charged Singh in February 2023 with fraud by misappropriation and aiding and abetting fraud committed by former FTX CEO Sam Bankman-Fried. Singh entered into a consent order in April 2023, was found liable, and agreed to cooperate with investigators.
In a separate case, the Securities and Exchange Commission settled with Singh in December. He received an eight-year industry ban in that matter, which also involved allegations of misusing customer funds.
After FTX collapsed, US prosecutors also indicted Singh on charges including fraud and campaign finance violations. He testified against Bankman-Fried and cooperated with prosecutors, ultimately receiving time served and three years of supervised release.
