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Update (2.38 p.m. ET): Adds charges from the SEC and CFTC.
Nishad Singh, a former director of engineering at FTX (FTT-USD), agreed to plead guilty to fraud charges at a hearing in Manhattan federal court on Tuesday.
He the charges include wire fraud, conspiracy to commit wire fraud on FTX customers, and conspiracy to commit commodity fraud. In connection with the guilty plea, Singh will lose certain assets received from FTX and its sister firm Alameda Research.
Later that day, the US Securities and Exchange Commission and the Commodity Futures Trading Commission filed separate charges against Singh. The second loaded Singh with fraudulent investors, while the CFTC charges were fraud by misappropriation and aiding and abetting fraud committed by Bankman-Fried, FTX and Alameda.
Both agencies alleged that Singh was responsible for creating software code underlying FTX that allowed client funds to be diverted to Alameda. Additionally, when FTX was on the brink of collapse, the SEC alleged that Singh withdrew ~6 million dollars from FTX for personal use, including the purchase of a multi-million dollar home.
The CFTC said Singh does not question his liability in his claims and agreed to a proposed consent trial order.
Late last year, former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang, other members of Bankman-Fried’s inner circle, pleaded guilty to fraud charges.
Singh previously engaged with prosecutors to seek a plea deal. Several former FTX executives have retained lawyers to discuss cooperation with prosecutors, including Daniel Friedberg, former FTX senior counsel, Reuters noted.
Bankman-Fried, who faces a series of federal charges and is due to go on trial in October, has pleaded not guilty to fraud and other charges. Last week, he was indicted on additional criminal charges.
