Nishad Signh, former head of engineering at bankrupt crypto exchange FTX pleaded guilty to criminal charges Tuesday, the third member of founder Sam Bankman-Fried’s inner circle to admit to illicit activities in relation to FTX.
Signh’s lawyer said the former high-level employee at FTX has agreed to plead guilty to criminal charges during a court proceeding, Reuters reported, after Singh reportedly met with U.S. prosecutors to discuss a potential cooperation agreement last month.
Singh pleaded guilty to wire fraud, conspiracy to commit wire fraud, money laundering, and conspiracy to defraud the U.S. government by violating campaign finance laws. Singh said that he was aware of mismanagement at FTX by the middle of last year and apologized for his role in the abuse of FTX’s funds.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) brought charges against Singh following his guilty plea. SEC Director of Enforcement Gurbir Grewal claimed in a statement that what Singh did at FTX "was fraud, pure and simple," helping create software code that led to customer funds being stolen.
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