Former FTX Head of Engineering Nishad Singh Fined $3.7 Million

Nishad Singh, the former head of engineering at FTX, has agreed to pay $3.7 million to resolve a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) over his alleged role in the crypto exchange’s collapse and the misappropriation of user funds.

CFTC Orders Disgorgement and Trading Bans

Under the supplemental consent order, Singh will pay $3.7 million in disgorgement and faces a five-year ban on trading in markets along with an eight-year registration ban, preventing him from obtaining a license to operate in the sector. The CFTC stated that the order resolves its enforcement action against Singh and reflects both the seriousness of his violations and his cooperation with investigators.

FTX’s bankruptcy in November 2022 caused massive disruptions in the crypto industry, erasing billions in market liquidity and prompting multiple regulatory actions. Singh was charged by the CFTC in February 2023 with fraud by misappropriation and aiding and abetting fraud committed by former CEO Sam Bankman-Fried.

Singh’s Cooperation and Legal Outcomes

Singh also faced related cases from the Securities and Exchange Commission and US prosecutors. He received time served and three years of supervised release after cooperating with authorities and testifying against Bankman-Fried. His attorneys highlighted Singh’s limited role and extensive cooperation in these matters.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.