Former FTX head of engineering fined $3.7M to resolve CFTC lawsuit

Nishad Singh, the former head of engineering at FTX, has been fined $3.7 million by the US Commodity Futures Trading Commission (CFTC) to resolve a lawsuit concerning his role in the collapse of the cryptocurrency exchange and the misappropriation of user funds. As part of the agreement, Singh is required to pay $3.7 million in disgorgement and faces a five-year ban on trading in markets and an eight-year registration ban, preventing him from working in the sector. CFTC Director of Enforcement David Miller stated that the penalties reflect the severity of the violations but also acknowledge Singh’s cooperation with authorities.

Singh previously faced legal action from the SEC and the US Department of Justice after FTX’s collapse in November 2022, but avoided significant prison time by cooperating with investigators. He was initially indicted in February 2023 on charges of fraud and aiding and abetting fraud committed by former FTX CEO Sam Bankman-Fried.

Attorneys for Singh expressed gratitude that the matter is resolved and highlighted the CFTC’s recognition of his limited role and extensive cooperation. The CFTC originally sought broader penalties, including restitution and permanent bans, but ultimately settled for the current terms.

(Source：Headtopics)