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Nishad Singh, former director of engineering at FTX, is expected to plead guilty to fraud charges brought by U.S. prosecutors who are investigating the now bankrupt FTX cryptocurrency exchange, Reuters reported<\/a> on Feb 28.<\/p>\n During the hearing in a Manhattan federal court, Singh’s lawyer announced that his client had agreed to plead guilty to one count of wire fraud, one count of conspiracy to commit wire fraud on FTX customers, and one count of conspiracy to commit commodities fraud.\u00a0<\/p>\n Nishad Singh, the former director of engineering at now-bankrupt crypto exchange FTX, has agreed to plead guilty to U.S. criminal charges, his lawyer said in court, as U.S. prosecutors ramp up their probe into members of Sam Bankman-Fried’s inner circle https:\/\/t.co\/KinlD4h4Zj<\/a> pic.twitter.com\/8UFekP2XF5<\/a><\/p>\n \u2014 Reuters Legal (@ReutersLegal) February 28, 2023<\/a><\/p><\/blockquote>\n According to CNBC, Singh was a close friend of FTX founder Sam Bankman-Fried\u2019s younger brother in high school and became FTX\u2019s director of engineering in 2019. In 2020, Singh allegedly altered FTX\u2019s software to allow Alameda, where he had previously worked as chief executive, to avoid automatic asset sales when it was losing too much borrowed money. This exemption allowed Alameda to continue borrowing from FTX regardless of how much collateral secured its loans, according to Reuters. The U.S. Securities and Exchange Commission has alleged that this code change gave Alameda a \u201cvirtually unlimited line of credit\u201d at FTX and that the billions of dollars that FTX lent Alameda over the next two years came from FTX customers.<\/p>\n Singh, who was absent from public view for an extended period compared to other FTX executives, emerged in early January<\/a> to participate in a proffer session at the Southern District of New York\u2019s United States Attorney\u2019s office. During a proffer session, the person providing information may be given partial protection to divulge their insights to the prosecutors.<\/p>\n Related: Unsealed superseding indictment against Sam Bankman-Fried includes 12 criminal charges<\/a><\/em><\/strong><\/p>\n Singh\u2019s plea comes after a number of Bankman-Fried’s close associates have reportedly agreed\u00a0to cooperate with prosecutors in recent months.<\/p>\n In December, Cointelegraph reported that former FTX and Alameda Research executives Caroline Ellison and Gary Wang had pleaded guilty to fraud charges<\/a>, and were cooperating with the Justice Department\u2019s investigation<\/a>.<\/p>\n Bankman-Fried has pleaded innocent to eight federal charges and is currently living with his parents in California. His criminal trial in federal court is scheduled to begin in October<\/a>, while FTX\u2019s bankruptcy case is ongoing in U.S. Bankruptcy Court for the District of Delaware.<\/p>\n<\/div>\n\n