- He confessed to conspiracy to commit fraud
- Previously, Caroline Ellison and Gary Wang spoke about their illegal actions.
Former FTX CTO Nishad Singh acknowledged himself guilty of several criminal charges. A few days ago, he stated that he was ready to cooperate with the investigation.
Singh’s lawyer said he agreed to plead guilty to conspiracy to commit merchandise fraud. Earlier, Caroline Ellison and Gary Vangu pleaded guilty to 7 and 4 charges, respectively.
FTX CEO Sam Benkman-Fried was charged with eight counts of fraud in December but pleaded not guilty. Prosecutors say he stole billions of FTX client funds to cover losses for hedge fund Alameda Research.
Singh was friends with SBF’s younger brother and worked at Alameda. After working for the foundation, he became the CTO of FTX in 2019. Nishad changed the software of the exchange. This operation allowed the fund to borrow from FTX regardless of what the assets were secured with.
“Be very careful not to liquidate,” Singh wrote in a comment in the platform code.
The SEC said the code change gave FTX an unlimited line of credit. The statement also said that the billions of dollars that FTX secretly loaned to Alameda were received from FTX customers.