Ex-FTX Exec Pleads Guilty To Fraud

Nishad Singh, ex-director of engineering at crypto exchange FTX, pleaded guilty to six criminal counts, including wire fraud, money laundering, and conspiracy to make unlawful political contributions but was released on a $250,000 bond, Leo Schwartz reported for Nikkei Asia.

Photo Insert: FTX’s collapse was triggered by rival Binance’s decision to dump its holdings in FTT, the in-house digital token created by Bankman-Fried’s company.

Brett Harrison, the former president of FTX US, posted a lengthy tweet thread on Jan. 17, 2023, New York Post reporter Ariel Zilber wrote, saying Fried was an “insecure” manager who brooked no dissent.

He was consumed by “total insecurity and intransigence when his decisions were questioned” and that he displayed “spitefulness,” Zilber reported.

FTX’s collapse was triggered by rival Binance’s decision to dump its holdings in FTT, the in-house digital token created by Bankman-Fried’s company. The head of Binance, Changpeng “CZ” Zhao, also ended discussions with FTX on a rescue acquisition.

It was later learned that FTX was using customer deposits to cover risky bets made by Bankman-Fried’s hedge fund, Alameda Research. After FTX declared bankruptcy, a CEO was installed to help investors and creditors claw back billions of dollars.

Harrison, Bankman-Fried and his ex-lover Caroline Ellison, the former CEO of Alameda Research, are also alums of the trading firm Jane Street. Ellison and FTX co-founder Gary Wang have both pleaded guilty as part of plea deals with the federal government.

They are expected to testify against Bankman-Fried in exchange for lighter sentences, Thomas Barrabi also reported.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic