Ex-FTX executive is 3rd to plead guilty in cooperation deal

Feb 28, 2023, 11:23 AM | Updated: 4:29 pm

NEW YORK (AP) — The former engineering director at FTX pleaded guilty to charges including conspiracy and wire fraud Tuesday, becoming the third executive from the collapsed cryptocurrency giant to strike a cooperation deal with prosecutors building a case against the company’s founder, Sam Bankman-Fried.

The plea by Nishad Singh, 27, in what authorities have labeled one of the biggest frauds in history, encompasses charges that carry potential penalties of up to 75 years in prison if he fails to fully cooperate, including by testifying at any trials.

Singh’s plea “underscores once again that the crimes at FTX were vast in scope and consequence,” U.S. Attorney Damian Williams said in a statement.

“They rocked our financial markets with a multibillion-dollar fraud. And they corrupted our politics with tens of millions of dollars in illegal straw campaign contributions,” he said. “These crimes demand swift and certain justice and that is exactly what we are seeking in the Southern District of New York.”

Among the charges Singh pled guilty to were conspiracy to make unlawful political contributions and to defraud the Federal Election Commission. Prosecutors alleged Singh contributed to candidates and political committees and reported those contributions to the FEC in the names of people who didn’t actually pay for them.

According to FEC records, Singh contributed roughly $9.7 million last year and in late 2020 to various candidates and committees.

Singh’s lawyers, Andrew Goldstein and Russell Capone, said in a statement that their client is “deeply sorry for his role in this and has accepted responsibility for his actions.”

They added: “He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case.”

Singh’s plea “underscores once again that the crimes at FTX were vast in scope and consequence,” U.S. Attorney Damian Williams said in a statement.

“They rocked our financial markets with a multibillion-dollar fraud. And they corrupted our politics with tens of millions of dollars in illegal straw campaign contributions,” he said. “These crimes demand swift and certain justice and that is exactly what we are seeking in the Southern District of New York.”

Last week, prosecutors filed new fraud charges against Bankman-Fried, who has pleaded not guilty in the case. The fresh charges raised the number of years Bankman-Fried could face in prison to 155 years from 115 and described in detail a fraud that the government alleges occurred from 2019 until last November.

Bankman-Fried is awaiting trial while living with his parents in Palo Alto, California, after signing a $250 million personal recognizance bond.

He is accused of stealing billions of dollars in FTX customer deposits to support the company he founded, a global cryptocurrency exchange affiliated with the cryptocurrency trading hedge fund Alameda Research.

He also was charged with illegally funding speculative venture investments and misdirecting customer deposits to make charitable donations, along with spending tens of millions of dollars on illegal campaign donations to Democrats and Republicans in an attempt to buy influence over cryptocurrency regulation in Washington.

On the same December day Bankman-Fried was extradited from the Bahamas to face charges in New York City, prosecutors announced that two of his associates had pleaded guilty and forged their own deals to cooperate with prosecutors. Carolyn Ellison, Alameda Research’s former chief executive; and Gary Wang, an FTX cofounder, pleaded guilty to wire fraud, securities fraud and commodities fraud.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

This photo provided by Robert Wilkes, owner of a house boat management company, shows smoke rising ...

Associated Press

Houseboats catch fire while docked at Wahweap Marina on Lake Powell

More than half a dozen house boats momentarily caught fire at a popular boating destination on the Utah-Arizona line on Friday.

22 hours ago

File - Women work in a restaurant kitchen in Chicago, Thursday, March 23, 2023. On Friday, the U.S....

Associated Press

US hiring, unemployment jump in May and what that says about the economy

The nation’s employers stepped up their hiring in May, adding a robust 339,000 jobs, well above expectations.

22 hours ago

(Pixabay Photo)...

Associated Press

Oath Keeper from Arizona sentenced for role in Jan. 6 riot at US Capitol

Edward Vallejo, a U.S. Army veteran from Phoenix, oversaw a “Quick Reaction Force” at a Virginia hotel that was prepared to deploy an arsenal of weapons into Washington if needed, authorities say.

2 days ago

FILE - U.S. Border Patrol Chief Raul Ortiz listens during a news conference, Jan. 5, 2023, in Washi...

Associated Press

US Border Patrol chief is retiring after seeing through end of Title 42 immigration restrictions

The head of the U.S. Border Patrol announced Tuesday that he was retiring, after seeing through a major policy shift that seeks to clamp down on illegal crossings at the U.S.-Mexico border following the end of Title 42 pandemic restrictions.

3 days ago

FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as...

Associated Press

House OKs debt ceiling bill to avoid default, sends Biden-McCarthy deal to Senate

The House approved a debt ceiling and budget cuts package late Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.

3 days ago

Sean Bickings (Family Photo via city of Tempe)...

Associated Press

Family of man who drowned last year in Tempe Town Lake files wrongful death lawsuit

The family of a man who drowned in Tempe Town Lake a year ago filed a wrongful death lawsuit against the city Wednesday, noting that its police department doesn't have a policy requiring officers to go into the water to save someone.

3 days ago

Sponsored Articles

...

SANDERSON FORD

Thank you to Al McCoy for 51 years as voice of the Phoenix Suns

Sanderson Ford wants to share its thanks to Al McCoy for the impact he made in the Valley for more than a half-decade.

...

re:vitalize

Why drug-free weight loss still matters

Wanting to lose weight is a common goal for many people as they progress throughout life, but choosing between a holistic approach or to take medicine can be a tough decision.

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Ex-FTX executive is 3rd to plead guilty in cooperation deal