FTX Co-Founder Pleads Guilty

'I am unbelievably sorry for my role in all of this,' says Nishad Singh
By Rob Quinn,  Newser Staff
Posted Mar 1, 2023 6:40 PM CST
Another Member of Bankman-Fried's Inner Circle Pleads Guilty
The FTX Arena logo is seen where the Miami Heat basketball team plays on Nov. 12, 2022, in Miami.   (AP Photo/Marta Lavandier, File)

FTX co-founder Nishad Singh pleaded guilty to six fraud and money laundering charges Tuesday, becoming the third exec from the collapsed cryptocurrency to agree to cooperate with prosecutors. The 27-year-old admitted that he knew founder and former CEO Sam Bankman-Fried was cheating customers by sending their funds, without their knowledge, to his Alameda Research hedge fund, Quartz reports. "I am unbelievably sorry for my role in all of this," said Singh. He said he would forfeit his proceeds from the scheme. Engadget reports that according to bankruptcy filings, Singh received a $543 million loan from Alameda.

Singh pleaded guilty to one count of wire fraud, three counts of conspiracy to commit fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to defraud the US by violating campaign finance laws, reports Reuters. He admitted Tuesday that he made political donations in his own name that involved Alameda funds. "He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability," Singh's lawyers said in a statement.

Quartz reports that Singh could face a maximum sentence of 75 years, but prosecutors have promised to seek a much lower sentence. The Securities and Exchange Commission and the Commodity Futures Trading Commission filed separate civil lawsuits against Singh on Tuesday. Two other former members of Bankman-Fried's inner circle, former Alameda chief executive Caroline Ellison and former FTX chief technology officer Gary Wang, pleaded guilty to multiple charges in December. Singh's guilty plea adds to the pressure on Bankman-Fried, who now faces a dozen charges with a maximum penalty of 155 years. (More FTX stories.)

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