Nishad Singh, former chief engineer at FTX and close to Sam Bankman-Fried, pleaded guilty to all 6 charges and agreed to cooperate with authorities. The latter has fully acknowledged the facts of which he is accused, in particular of having created the famous backdoor between FTX and Alameda Research which would have allowed the circulation of 65 billion dollars in all discretion.
Former FTX executive turns himself in and confesses
Nishad Singh eventually pleaded guilty. On February 18, we informed you that the old framework of FTX – who had actively participated in the creation of the exchange – wanted to cooperate with authorities regarding the investigation surrounding FTX and its former CEO, Sam Bankman-Fried.
Although only 27 years old, Nishad Singh still enjoyed a prominent place within the fallen FTX empire. As chief engineer of the exchangehe himself had coded the initial structure of FTX in its early days and continued to oversee its development until the company’s bankruptcy.
According to the Securities and Exchange Commission (SEC), it was also Nishad Singh who wrote the code allowing the creation of the famous backdoor to 65 billion dollars, which acted, in all discretion, bridge between FTX and its sister company Alameda Research.
The SEC also adds that Sam Bankman-Fried and his various lieutenants misled their clients on this subject all the more because they asserted that FTX was “ a safe cryptocurrency trading platform with sophisticated risk mitigation measures but also that Alameda Research was “ just another client without any privileges “.
The creation of this backdoor has been called ” outright fraud by Gurbir Grewal, Director of the SEC’s Division of Enforcement, since the funds used here were those of the customers of the exchange.
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Beyond the hidden gateway between FTX and Alameda Research, the company formerly managed by Caroline Ellison – who also pleaded guilty -, Among other things, Nishad Singh was found guilty of withdrawing $6 million from the platform shortly after its bankruptcy.
A staggering fault, and all the more so given the nature of the expenses made with these funds, since the former chief engineer used these millions of dollars to buy a luxurious house and make donations to charities. of charity. These withdrawals were also concealed through falsification of documents.
The former colleague and close friend of Sam Bankman-Fried multiplied the apologies to prosecutors, alleging that he knew full well that what he had done was wrong:
“I took steps to make it appear that FTX’s revenue was higher than it was and provided this information to listeners. I knew my conduct was wrong. »
Nishad Singh has fully admitted his wrongdoing and pleaded guilty to the 6 counts he was charged with after reaching a co-operation agreement with federal prosecutors. He was able to leave court after signing $250,000 bonda gesture granted by the authorities insofar as the person concerned decided to come forward and cooperate on his own.
👉 Read also – Robinhood in the sights of the SEC: its services relating to cryptocurrencies threatened?
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Source: Bloomberg
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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