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Nishad Singh, a co-founder of the cryptocurrency exchange FTX and a former associate of Sam Bankman-Fried, pleaded guilty to fraud in a lawsuit tied to the collapse of the exchange, which filed for bankruptcy on November 11. The admission marks another critical development in a case that has drawn intense scrutiny from regulators, investors, and the crypto industry alike, as described by multiple media outlets.

With Singh admitting guilt, three individuals from Bankman-Fried’s inner circle now stand exposed to accountability.

Previously, Carolyn Ellison, who led Alameda Research, FTX’s investment arm, and Gary Wang, another co-founder of FTX, had already pleaded guilty to fraud on December 22 and signaled their willingness to cooperate with prosecutors, aligning with Singh’s stated posture. The evolving admissions represent a notable shift in the government’s efforts to hold top executives responsible for the alleged mismanagement and misuse of customer funds.

This wave of developments comes amid fresh federal charges in the United States against Bankman-Fried, who faces multiple counts related to diverting client deposits to bolster corporate operations and Alameda Research, funding political contributions and charitable acts, and enriching himself through the alleged schemes. The ongoing actions underscore ongoing regulatory concerns about liquidity, transparency, and risk controls within high-profile crypto enterprises.

Simultaneously, the Securities and Exchange Commission announced a formal complaint against Singh, alleging participation in a multi-year scheme to defraud stock investors in the FTX trading platform and its associated crypto ventures, created alongside Samuel Bankman-Fried and Gary Wang. The complaint emphasizes the role of Singh in software design intended to route customer funds toward Alameda Research, and asserts his active involvement in deceiving investors. Source: media reports.

The SEC’s filing suggests that FTX was already approaching bankruptcy proceedings as Singh allegedly withdrew millions of dollars for personal use, including the purchase of a high-value residence and charitable donations. Analysts have noted that such withdrawals, if proven, would illustrate a pattern of self-dealing that exacerbated the company’s financial troubles during a period of rapid, aggressive growth.

At the family home in California, where Bankman-Fried also faces scrutiny, Singh reportedly pleaded not guilty to a total of 12 charges and was released on bail as the case proceeds through the legal system. Observers highlight that the connection between these charges and the broader bankruptcy landscape remains central to regulators’ efforts to establish accountability for mismanagement, misappropriation, and misleading disclosures in the crypto arena.

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