• US law enforcement is reportedly scrutinizing Nishad Singh, the former Director of Engineering at FTX.
• Singh allegedly met with federal prosecutors at an alleged proffer session held at the U.S. attorney’s office for the Southern District of New York.
• Reports indicate that Singh donated $9.3 million to Democratic political candidates since 2020 and borrowed $543 million from Alameda Research before FTX collapsed.
Recent reports have indicated that US law enforcement officials have been targeting Nishad Singh, the former Director of Engineering at FTX, in an effort to investigate alleged fraud at the company and its CEO, Sam Bankman-Fried. This news comes after reports that Singh had been spotted in the Southern District of New York (SDNY) region and had held proffer sessions with local law enforcement.
Nishad Singh has been involved with FTX since its launch in 2020, and is believed to have contributed code to the FTX platform. Additionally, bankruptcy documents have revealed that Singh borrowed $543 million from Alameda Research before the business collapsed in 2021.
Further reports have indicated that Singh has been active in politics, donating $9.3 million to Democratic candidates since 2020. This has raised speculation as to whether his political activities have anything to do with the investigation, or if the scrutiny is focused solely on the alleged fraud at FTX.
It is unclear if Singh is cooperating with the investigation, or if he will face any charges. However, the investigation into FTX and Sam Bankman-Fried is said to be so expansive that the US attorney’s office for the Southern District of New York could exhaust all its resources. This could potentially leave Bankman-Fried isolated in the investigation, depending on how the situation develops.
At this time, the details of the investigation remain unclear, and it is unknown how long it will take to uncover all the facts. What is certain is that the scrutiny of Nishad Singh is a development that could have major repercussions for FTX, Sam Bankman-Fried and the cryptocurrency industry as a whole.