Blockchain News

FTX Former Lead Engineer in Talks with Federal Prosecutors in Bankman-Fried Case

A third former FTX executive is reportedly considering testifying against Sam Bankman-Fried in order to get a lighter sentence.

As the investigation into FTX continues, the crypto exchange’s former engineering chief Nishad Singh reportedly met with federal prosecutors to cut a deal, following former FTX and Alameda Research executives Gary Wang and Caroline Ellison.

According to a Jan. 10 Bloomberg report, Singh attended a proffer session at the United States Attorney’s Office for the Southern District of New York to determine if he has valuable information to offer in the lawsuit against FTX founder Sam Bankman-Fried.

Prosecutors are interested in Singh’s knowledge of FTX’s political donations because one of the charges Bankman-Fried faces is violating campaign finance laws.

Singh has made significant political donations over the years and may be able to assist prosecutors in better understanding FTX’s political donations.

If his cooperation and information are deemed valuable, he may be offered a plea bargain.

Singh will join Wang and Ellison, the co-founder of FTX and the former CEO of Alameda, as a former FTX-connected executive who has reached an agreement with federal prosecutors.

Following Wang and Ellison’s pleas, U.S. Attorney Damian Williams issued a warning to those involved in the misconduct at FTX and Alameda in December 2022, saying, “come see us before we come to see you.”

On January 5, it was reported that the US Securities and Exchange Commission (SEC) is looking into Singh for his possible role in defrauding FTX investors and users.

This follows news in December 2022 that politicians and news organizations planned to return $6.6 million in FTX donations, with three prominent Democratic groups deciding to return more than $1 million to investors who had lost funds.

According to a recent filing in November 2022, Alameda loaned $543 million to Singh, one of three related party loans made by the trading firm, which also included a $1 billion loan to Bankman-Fried and a $55 billion loan to FTX Digital Markets co-CEO, Ryan Salame.


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