Another former executive of the FTX exchange has pleaded guilty to defrauding cryptocurrency investors.
Nishad Singh, the former Director of Engineering at FTX, has pleaded guilty to six criminal charges in New York court.
Singh, who worked directly with FTX founder Sam Bankman-Fried at the now bankrupt cryptocurrency exchange, pleaded guilty to charges that include fraud and conspiracy to commit fraud.
Singh is the latest in a series of former FTX executives to plead guilty to the charges against them. Caroline Ellison, who ran sister company Alameda Research, and Gary Wang, an FTX co-founder, previously pled guilty to fraud charges tied to FTX's collapse last November.
FTX filed for bankruptcy on November 11, 2022, citing $8 billion U.S. in losses and listing more than one million creditors. The exchange’s collapse led to contagion across the entire crypto sector.
Prosecutors in the U.S. allege that FTX used Alameda's bank accounts to accept customer deposits, knowing that banks would not want to provide services to a cryptocurrency exchange, and that FTX customer funds were misappropriated for various uses.
Sam Bankman-Fried has been charged with 12 different criminal counts that include bank fraud, securities and commodities fraud, and conspiracy to commit money laundering, among others.
Bankman-Fried has pleaded not guilty to all charges and is scheduled to go to trial in New York City this autumn.
