Former FTX employees cooperate with prosecutors in Bankman-Fried case
2023.01.10 02:56
Former FTX employees cooperate with prosecutors in Bankman-Fried case
By Tiffany Smith
Budrigannews.com – Following former FTX and Alameda Research executives Gary Wang and Caroline Ellison, the crypto exchange’s former engineering chief Nishad Singh reportedly met with federal prosecutors to make a deal as the investigation into FTX continues.
According to a Bloomberg report from January 10, Singh attended a proffer session at the United States Attorney’s office for the Southern District of New York sometime last week in order for prosecutors to determine whether he has valuable information to offer in the lawsuit against FTX founder Sam Bankman-Fried.
As one of the charges against Bankman-Fried is violating the law regarding campaign contributions, prosecutors are interested in Singh’s perspective on FTX’s political contributions.
Prosecutors may be able to gain a better understanding of FTX’s political donations with the assistance of Singh, who has himself made significant political contributions over the years.
If his information is deemed valuable, his cooperation and information may result in a plea bargain.
As a result of an agreement with federal prosecutors, Singh will join Wang and Ellison as former FTX-linked executives. Wang is the co-founder of FTX, while Ellison was Alameda’s former CEO.
U.S. Attorney Damian Williams issued a warning to those who participated in the misconduct at FTX and Alameda in December 2022 after Wang and Ellison entered pleas, stating, “Come see us before we come to see you.”
The Securities and Exchange Commission (SEC) of the United States is looking into whether Singh was involved in defrauding FTX investors and users, as reported on January 5.
This comes after it was reported in December 2022 that politicians and news organizations planned to return $6.6 million in donations from FTX, and that three prominent Democratic groups had decided to return over $1 million to investors whose funds had been lost.
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In a recent filing from November 2022, it was revealed that Alameda loaned $543 million to Singh. This was one of three related party loans given by the trading firm. The other two loans were for $55 billion to the co-CEO of FTX Digital Markets, Ryan Salame, and $1 billion to Bankman-Fried.
