FTX Insider Seeks Deal: Will This Further Isolate Sam Bankman-Fried In Fraud Case?

The former head of engineering at cryptocurrency exchange FTX has met with federal prosecutors in an attempt to join two other members of former CEO Sam Bankman-Fried's inner circle in seeking a cooperation deal in the fraud case related to the collapse of the exchange.

According to Bloomberg News, Nishad Singh — who has not been accused of any wrongdoing — recently participated in a proffer session (a meeting between prosecutors and individuals tied to an investigation) at an attorney's office in the Southern District of New York.

This type of meeting is typically used to grant limited immunity to individuals in exchange for information they can share with prosecutors.

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However, it's not guaranteed, since prosecutors must evaluate the value of the information shared before deciding to offer a deal.

Singh’s agreement with federal prosecutors is likely to exacerbate troubles for Bankman-Fried, who pleaded not guilty in the ongoing FTX criminal probe.

Caroline Ellison, the former CEO of FTX's hedge fund arm Alameda Research, and FTX co-founder Gary Wang have both pleaded guilty to fraud charges and are cooperating with authorities.

The report stated that according to prosecutors, Bankman-Fried laundered customer funds through political and charitable donations as part of a prolonged fraud at FTX which is characterized as "epic proportions".

The indictment also includes campaign finance violations.

According to bankruptcy court filings, Singh received hundreds of millions of dollars in loans from Alameda Research.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are also investigating Singh.

Meanwhile, Bankman-Fried met with regulators and visited the White House as he promoted crypto causes, also at least $73 million in political donations have been linked to FTX, and Bankman-Fried himself pledged to give as much as $1 billion in the 2024 presidential election cycle.

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