US authorities are investigating Nishad Singh, a former associate of Sam Bankman-Fried, ex-CEO of cryptocurrency firm FTX and trading firm Alameda Research, Bloomberg reported On January 5th, citing persons familiar with the matter told.
Nishad Singh, former engineering director at FTX, is also being investigated by the SEC and the CFTC. The former close associate of SBF lived with him in a Bahamas penthouse and is facing legal scrutiny as SBF fights criminal charges.
According to the report, Federal prosecutors in Manhattan are investigating whether Singh was involved in a scheme to defraud investors and clients at FTX and Alameda Research. If found guilty, he could face charges this month.
However, Singh’s lawyer and representatives for the US Attorney’s Office, SEC, and CFTC declined to comment on the investigation to Bloomberg.
Ex-FTX CEO Bankman-Fried’s Inner Circle
As reported by TronWeekly, on January 3rd, SBF pleaded not guilty to allegations in a federal court in New York. Former associates Caroline Ellison and Gary Wang have already pleaded guilty to fraud in their roles at Alameda and FTX and are cooperating with authorities.
However, it is not clear if Singh is cooperating with US officials. According to Bloomberg, Ellison, Wang, and Singh were part of Bankman-Fried’s inner circle, and Singh was known for his coding skills and philanthropy.
According to Bloomberg’s statement:
Behind the scenes, Ellison, former chief executive of Alameda; Wang, who co-founded FTX; and Singh, formed the backbone of Bankman-Fried’s inner circle. Singh was also known as a gifted coder and philanthropist.
The investigation into Singh’s involvement with SBF’s fraud is ongoing, and the extent of his involvement is currently unknown. In November, it was reported that Singh and others were aware of the exchange transferring funds to Alameda Research.
Last month, the exchange’s Digital Markets CEO, Ryan Salame, mentioned Singh as one of three individuals authorized to make those transfers. He was also reported to have held a $543 million loan from Alameda in November.
Moreover, inquiries into FTX’s Bahamas condominiums also named Singh. He was also named, along with Salame and former FTX CEO, as having made controversial political donations during the last election cycle.