Inner Circle of FTX Is Being Investigated

U

S Prosecutors Launch Probe into Another Member of FTX's Innermost Circle, As the Investigations Deepen.

U.S. prosecutors have reportedly begun to investigate the involvement of Nishad Singh, ex-engineering director for Sam Bankman-Fried's bankrupt cryptocurrency exchange FTX and its related trading firm Alameda Research, in a possible case of fraud - as per Bloomberg's sources on Friday (Jan 6).

The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are reportedly delving into the activities of Singh, though no charges have been pressed against him yet. It is unknown whether he has decided to cooperate with their investigations or not.

Singh formerly shared a Bahamas penthouse with Bankman-Fried and was part of his inner circle, alongside ex Alameda Research CEO Caroline Ellison as well as FTX co-founder Gary Wang - that's according to the report.

Ellison and Wang admitted their guilt in December for the charges pressed against them regarding FTX's collapse, as well as its associated companies. In addition, they are currently working with law enforcement to provide additional information related to this case.

Bankman-Fried's impending trial will most likely call upon the testimony of two witnesses: both close to him and aware of FTX's internal operations, having confessed culpability and offering to help the prosecution.

On December 21st, Damian Williams, U.S. Attorney declared in a public video regarding the FTX case that “Today’s announcement will not be our last. If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal.” 

Also, Bankman-Fried's attorneys put forward an argument in a U.S. court that Robinhood stocks taken by the American government should be returned to Bankman-Fried as they are his property and not related with the FTX insolvency case.

On Tuesday, Bankman-Fried firmly maintained his innocence in a Manhattan courtroom while pleading "not guilty" to the allegations of fraud he faces. Although this plea was expected due to the nature of criminal proceedings, there is still potential for him to alter it at some point down the line. Furthermore, it has been reported that Bankman-Fried needs access to certain assets in order cover legal costs associated with defending himself against these charges.

Jonathan

An editor at Coincrop

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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.