Co-founder of the cryptocurrency platform FTX Nishad Singh, ex-partner of Sam Bankman-Fried, He pleaded guilty to fraud in a lawsuit filed against his company, which filed for bankruptcy on November 11, according to various media reports.
With Singh admitting his guilt, There are three people from Bankman-Fried’s closest circle who realize their responsibilities.
Former head of FTX’s investment arm, Alameda Research Carolyn Ellison and FTX co-founder Gary Wang They have already pleaded guilty to fraud on December 22. and they promised to cooperate with the prosecution, as Singh is doing now.
This new change in the crypto platform status comes less than a week after that.US federal officials charged four new charges against the hapless FTX founder, in connection with stealing money from clients’ deposits to support the operations of the company and related investment fund Alameda Research, make charitable contributions and political donations, and enrich himself.
It also coincides with a statement where the Securities and Exchange Commission (SEC) announced that it had filed a complaint against Singh. “For its role in a multi-year scheme to defraud stock investors in FTX, the trading platform cryptocurrencies It was started by Singh with Samuel Bankman-Fried and Gary Wang”.
According to the SEC’s complaint, Singh created software code that allowed FTX client funds to be diverted to Alameda Research.; Likewise, he claims to have actively participated in the scheme to deceive FTX investors.
The SEC also claims that FTX is approaching bankruptcy.Singh withdrew approximately $6 million from FTX for personal use and expenses, iIncluding the purchase of a multimillion-dollar home and donations to charities.
At his family home in Bankman-Fried, California, who pleaded not guilty and was released on bail. facing a total of 12 charges.