The US government agencies will investigate to find FTX’s former official Nishad Singh.
Nishad Singh was the Director of Engineering of FTX and he was able to transfer funds from the FTX exchange because he was holding a special code to access the FTX funds. After the downfall of the FTX exchange, Nishad Singh has been missing. So far to this date, only Sam Bankman-Fried (SBF) & Gary Wang as two former FTX officials are under custody over the FTX fraud charges. Alongside of these two former FTX officials, Alameda Research former CEO Caroline Ellison is under custody for her involvement in the unethical financial activity between Alameda & FTX.
On 5 Jan 2023, Bloomberg reported that three US-based government agencies, namely The Commodities and Futures Trading Commission (CFTC), Securities and Exchanges Commission (SEC), and the Southern District of New York (SDNY), opened a investigation to find Mr. Nishad and further to find out the role of this person in the FTX exchange meltdown.
Just after the FTX exchange meltdown, Nishad is missing, and his public absence created many conspiracy theories & the majority of the theories targeted Nishad as one of the culprits behind the fraud that the FTX exchange did with huge numbers of Crypto investors.
Nishad Singh holds a 7.8% stake in the bankrupt crypto exchange FTX. And reportedly he collected $500 million from Alameda Research as a loan. Alameda Research was one of the sister companies of the FTX exchange.
Sam Bankman-Fried (SBF) is the founder & former CEO of FTX exchange and he is also 95% owner of digital assets trade firm Alameda Research.
SBF was funding his Alameda Research with the help of the FTX exchange. Indeed he was transferring FTX customers’ funds to Alameda, which was illegal.
When the whole situation came to light in the Crypto Community then the majority of the FTX customers panicked and started to withdraw their funds from the platform. Finally, in the two weeks of Nov 2022, the exchange failed to give withdrawal of the funds to the users and finally on 11 Nov filed for bankruptcy under chapter 11 in a US bankruptcy court along with more than 100s of its affiliated companies.