Nishad Singh, the former head of engineering at bankrupt crypto exchange FTX, is close to striking a plea deal with federal prosecutors in the ongoing case against the exchange and its execs.
According to a Bloomberg report, which cited people familiar with the matter, Singh plans to plead guilty to criminal charges over his role in the FTX saga.
The report noted that Singh has been negotiating a deal with Manhattan prosecutors as the case against FTX founder and former CEO Sam Bankman-Fried (SBF) thickens.
A plea deal is an agreement between the prosecutor and the defendant of a criminal case, in which the latter concedes to pleading guilty to lesser charges against them while the former provides more lenient sentencing.
Recall that Singh attended a proffer session with prosecutors in January as efforts were made to determine whether he had any information that would be useful to the prosecution.
CryptoPotato reported that if helpful information was found, Singh could enter a plea deal with the court in exchange for his cooperation.
Unnamed sources have now revealed that the possibility of a plea deal is high as the former FTX executive is planning to admit to the charges brought against him.
They also disclosed that the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) intend to sue Singh for his role in the FTX fiasco.
If Singh’s plea deal with the court pulls through, he will be the third high-level executive to plead guilty to charges over his role in the scheme and provide evidence against SBF.
Last year, former FTX and Alameda Research executives Gary Wang and Caroline Ellison pleaded guilty to charges against them for their roles in FTX’s collapse. Both executives, who were also members of SBF’s inner circle, are working with prosecutors in the case against Bankman-Fried.
Meanwhile, SBF, currently on $250 million bail, has been under house arrest in his parents’ home and awaits trial in October. Interestingly, he refused to plea guilty to the same charges.
The post Another SBF Close Associate Wants to Plead Guilty in FTX Fraud Case: Report appeared first on CryptoPotato.
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