US authorities are casting a wider net after key figures who may have been involved in the anomalies in the FTX crypto exchange.
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are currently investigating former FTX engineering chief Nishad Singh, Bloomberg reported Thursday, citing people familiar with the matter.
The ongoing and expansive investigation of FTX is one of the most significant corporate criminal cases in US history.
Bankman-Fried is accused of operating a “fraud of epic proportions” on the exchange for years, using consumer deposits to finance another company, Alameda Research, as well as real estate acquisitions and political donations. He pleaded not guilty in a US court.
Bankman-Fried’s lawyers did not immediately respond to a request for comment, Bloomberg said.
Is Singh Involved In Fraud?
Singh could be indicted as early as this month if federal prosecutors in Manhattan determine that he participated in an alleged multiyear conspiracy to defraud investors and clients at the company’s current exchange and trading arm Alameda Research, the report said.
Former Alameda CEO Caroline Ellison and former FTX CTO Gary Wang have entered guilty pleas to criminal charges. They were two of Bankman-Fried’s most trusted assistants.
Image: The Telegraph
According to a Reuters report, US authorities have not brought charges against Singh. The report further states that it is unclear whether the former FTX engineering director cooperated with US officials.
Singh has been repeatedly mentioned about the death of FTX, but no action has been taken against him.
In November last year, it was reported that Singh and others had full knowledge of the transfer of FTX funds to Alameda.
In December, Ryan Salame, co-CEO of FTX Digital Markets, identified Singh as one of three individuals with the necessary expertise to carry out the transfer.
Reuters reported last December that in mid-2020, Singh modified the FTX software to exclude Alameda from the trading platform’s feature that would have automatically liquidated assets if it lost borrowed funds.
Where is Singh?
Reports also state that Singh has been missing since FTX filed for bankruptcy in November. According to court documents, Alameda loaned Bankman-Fried $1 billion and Singh $543 million.
Crypto total market cap at $771 billion on the daily chart | Chart: TradingView.com
Bankman-Fried’s Third in Command?
Singh’s absence from the public eye may have led to the ongoing investigation. He is the third of Bankman-Fried’s top partners to be investigated by the federal government.
Andrew D. Goldstein, Singh’s attorney, did not immediately respond to a request for comment.
Once considered the “white knight” of the cryptocurrency industry, FTX has been liquidated for less than two weeks as a result of the liquidity mess.
In November, the company filed for bankruptcy due to what its new chief executive called a “total collapse of control of the company.”
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