A key FTX executive reportedly met with the feds last week, adding one other headache to Sam Bankman-Fried as former colleagues line as much as pounce on the disgraced former billionaire.
Nishad Singh, former head of engineering for FTX and a member of Bankman-Fried’s inner circle, held a session with prosecutors from the Southern District of Recent York, reported Bloomberg on Monday evening, citing people familiar with the matter.
Singh was not charged in connection with the FTX implosion, but his presence signaled that he was searching for a settlement.
Proffer sessions often function a precursor to more substantial co-operation deals where participants receive limited legal immunity in exchange for spilling dirt.
Prosecutors will assess the worth of Singh’s information before deciding whether to supply him a deal.
A representative for the Southern District of Recent York and Singh’s attorney, Andrew G. Goldstein, declined Bloomberg’s request for comment.
Singh was close friends in highschool with Bankman-Fried’s brother Gabriel. Prior to joining FTX, Singh worked at Bankman-Fried cryptocurrency hedge fund Alameda Research.
Court documents in November revealed that Singh received a $543 million loan from Alamed, CoinDesk reported. Alameda closed in November as FTX and over 100 branches filed for bankruptcy.
Like Bankman-Fried, Singh was also a mega-donor to the Democrats ahead of the 2022 midterm elections. In response to data collected by OpenSecrets, he donated over $9 million to democratic causes.
If a cooperation agreement is reached, Singh will join a growing list of top FTX officials who’ve worked with authorities on the corporate’s internal workings.
FTX co-founder Gary Wang and former CEO of Alameda Research Caroline Ellison – who can be a former lover of Bankman-Fried – entered into plea bargains and pleaded guilty to fraud. A recent court transcript revealed that Ellison apologized for her role within the alleged scheme.
Ryan Salame, co-CEO of FTX Digital Markets, previously informed regulators within the Bahamas that FTX used customer funds to “cover financial losses” at Alameda.
Elsewhere, former FTX executive Dan Friedberg, a lawyer linked to the UltimateBet “God Mode” poker fraud scandal, began working with the feds last November.
Earlier this week, Brett Harrison, former president of FTX’s US operation, pledged to disclose his knowledge of the corporate’s interests “in time” and suggested he may now speak to investigators.
Bankman-Fried is currently under house arrest and pleaded not guilty to eight federal charges. Prosecutors accused him of overseeing considered one of the largest scams in history when he extorted client funds to fund a lavish lifestyle and canopy losses at Alameda.
With postal wires