​​ A former FTX director will admit guilt to fraud charges F | Goodcrypto Announcment [old]

​​ A former FTX director will admit guilt to fraud charges

Former director of engineering at FTX, Nishad Singh, is expected to plead guilty to fraud charges brought by U.S. prosecutors investigating the now bankrupt FTX cryptocurrency exchange. According to Reuters, 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.

Singh allegedly altered FTX's 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 code change allowed Alameda to continue borrowing from FTX regardless of how much collateral secured its loans, giving Alameda a "virtually unlimited line of credit" at FTX, according to the U.S. Securities and Exchange Commission. CNBC reported that billions of dollars that FTX lent Alameda over the next two years came from FTX customers.

Singh emerged in early January to participate in a proffer session at the Southern District of New York’s United States Attorney’s office. During a proffer session, the person providing information may be given partial protection to divulge their insights to the prosecutors.

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