Former FTX head of engineering Nishad Singh is close to reaching a plea agreement with federal prosecutors in the continuing investigation against the exchange and its executives.
Singh intends to enter a guilty plea to the criminal charges stemming from his involvement in the FTX scandal, according to a Bloomberg story that quoted people familiar with the situation.
According to the article, Singh has been negotiating a settlement with Manhattan prosecutors as the evidence against Sam Bankman-Fried (SBF), the founder and former CEO of FTX, grows.
In January, Singh participated in a proffer meeting with prosecutors to see if he could provide any information that might be helpful to the prosecution.
Unnamed sources have now said there is a good chance of a plea agreement since the former FTX CEO intends to confess the allegations against him.
They also revealed that Singh will be sued by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) for his involvement in the FTX scandal.
Singh will become the third high-level executive to admit guilt to charges related to his involvement in the scam and offer testimony against SBF if the court accepts the terms of his plea agreement.
Gary Wang and Caroline Ellison, two former executives of FTX and Alameda Research, pled guilty to charges against them for their participation in the demise of FTX last year. In the case against Bankman-Fried, both executives—who were also members of SBF’s inner circle—are collaborating with the prosecution.
While waiting for his October trial, SBF was placed under house arrest at his parent’s residence while held on a $250 million bond. Interestingly, he declined to admit responsibility for the same offenses.