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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFTX Co-Founder Pleads Guilty 'I am unbelievably sorry for my role in all of this,' says Nishad Singh
FTX co-founder Nishad Singh pleaded guilty to six fraud and money laundering charges Tuesday, becoming the third exec from the collapsed cryptocurrency to agree to cooperate with prosecutors.
The 27-year-old admitted that he knew founder and former CEO Sam Bankman-Fried was cheating customers by sending their funds, without their knowledge, to his Alameda Research hedge fund, Quartz reports. "I am unbelievably sorry for my role in all of this," said Singh. He said he would forfeit his proceeds from the scheme. Engadget reports that according to bankruptcy filings, Singh received a $543 million loan from Alameda.
Singh pleaded guilty to one count of wire fraud, three counts of conspiracy to commit fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to defraud the US by violating campaign finance laws, reports Reuters. He admitted Tuesday that he made political donations in his own name that involved Alameda funds. "He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability," Singh's lawyers said in a statement.
Quartz reports that Singh could face a maximum sentence of 75 years, but prosecutors have promised to seek a much lower sentence.
https://www.newser.com/story/332180/another-member-of-bankman-frieds-inner-circle-pleads-guilty.html
How FTXs Nishad Singh, Once an Honors Student, Turned to Crypto Crime
He is the latest member of FTXs inner circle to plead guilty to fraud
Updated March 1, 2023 12:04 pm ET
Nishad Singh followed Sam Bankman-Fried into the high-stakes world of cryptocurrency trading. Now he could help put the former FTX chief executive in prison.
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Mr. Singh attended the same elite Silicon Valley prep school as Mr. Bankman-Fried and was close friends with his younger brother, Gabriel Bankman-Fried. Like the Bankman-Fried brothers and several other top FTX executives, Mr. Singh was a proponent of effective altruism, a movement that urges adherents to make big bucks so they can give their fortune to charity.
Former colleagues said Mr. Singh was a well-liked figure at FTX, seen as kind and thoughtful and the most approachable member of the inner circle. The three other members of that circle were Mr. Bankman-Fried; Gary Wang, the reclusive genius who was FTXs chief technology officer; and Caroline Ellison, the chief executive officer of Alameda before its collapse. Both Mr. Wang and Ms. Ellison pleaded guilty to fraud charges in December.
Mr. Singhs former colleagues expressed disbelief that he got caught up in the alleged misuse of FTX customer funds, saying they found it hard to reconcile with his apparently sincere devotion to ethics and philanthropy.
Mr. Singh wrote software code that allowed Mr. Bankman-Fried to divert FTX customer funds to Alameda, andalong with Ms. Ellison and Mr. Wangknew about the misappropriation of funds, according to a lawsuit filed Tuesday by the Securities and Exchange Commission.
https://www.wsj.com/articles/how-ftxs-nishad-singh-once-an-honors-student-fell-into-crypto-crime-a37197a9
WhiteTara
(29,676 posts)DON'T mess with their money!