US authorities are intensifying the pressure on the inner circle of associates of Sam Bankman-Fried. The authorities are scrutinizing Nishad Singh, a former and close associate of FTX.
According to one person, Singh could be charged by federal prosecutors if it is found that he had a role in the schemes of FX and its trading firm Alameda Research where investors and clients were defrauded.
The Commodity Futures Trading Commission and SEC – Securities and Exchange Commission are probing Singh’s involvement also.
Singh, the high school friend of Bankman-Fried ‘s younger brother Gabe, lived in a penthouse with Bankman-fried until recently. Singh will add to the legal threats to BankMan-Fried as the former FTX owner fights a slew of criminal charges. Former FTX associates Gary Wang and Caroline Ellison have pleaded guilty charges in connection to their roles in FTX and Alameda and are now working closely with the authorities.
It is not clear whether Singh is cooperating with the US officials or will do in the future about the allegations. Representatives of the US Attorney’s Office, CFTC, and SEC declined to comment, and Singh’s lawyer Andrew D. Goldstein also did not comment.
Money Laundering Charges
The massive November crash of FTX is one of the most high-profile corporate crime cases in the history of the US. The regulators and prosecutors investing in the case allege that Bankman-Fried has conducted multiyear scams and misled investors in FTX. He misused the clients’ funds to pay off the expenses and debts of Alameda, the trading firm he owned.
Bankman -Fried has pleaded not guilty to the criminal charges on Tuesday. He was considered the face of the cryptocurrency business and rode riches and stardom before his downfall started. The 30-year-old billionaire was often seen on stage by politicians, athletes, and celebrities endorsing digital assets.
Singh, along with Ellison, the CEO of Alameda, and wang, the co-founder of FTX, was the backbone of Sam Bankman-Fried’s inner circle. Singh was also known as a philanthropist and gifted coder.
According to a Bloomberg News report last month, documentation revealed a GitHub account in the name authored Singh code that hid Alameda’s ballooning liabilities. It was unclear if any other employees had access to Singh’s account.
State Witness for a Reduced Sentence
While releasing the plea agreement of Wang and Ellison, Prosecutors said that they would recommend a lesser sentence if the duo provided substantial evidence for investigations. The US Attorney for New York South District, Damian Williams, said the authorities are planning to investigate deeper into the close associates of Sam Bankman-Fried.
Like Bankman-Fried, Singh was a major donor to Democratic party candidates. He has given more than $9.3 million since 2020, as records of the Federal Election Commission show.
The bankruptcy filing by Sam Bankman-Fried disclosed that he received $1 billion from Alameda. He laundered his client’s fund by channeling the money into charities, political donations, and other investments.
Singh borrowed from Alameda $543 million, according to the bankruptcy filing.
