U.S. authorities are ratcheting up pressure on Sam Bankman-Fried's inner circle as they scrutinize former close FTX associate Nishad Singh, according to people familiar with the matter.
If federal prosecutors in Manhattan find Singh had a role in the alleged multiyear scheme at FTX and trading firm Alameda Research to defraud investors and clients, he could be charged as soon as this month, said one of the people. The Securities and Exchange Commission and the Commodity Futures Trading Commission are also probing Singh, said the person, who asked not to be identified discussing the matter.
The scrutiny of Singh, who until recently lived with Bankman-Fried in a Bahamas penthouse and was a high school friend of his younger brother, Gabe, presents the latest legal threat to Bankman-Fried as he fights a slew of criminal charges. Former close associates Caroline Ellison and Gary Wang have pleaded guilty to fraud in connection to their roles at Alameda and FTX and are working with authorities.
It's unclear whether Singh, who hasn't been accused of wrongdoing, is cooperating with U.S. officials or will do so. Andrew D. Goldstein, a lawyer for Singh, declined to comment, as did representatives for the U.S. Attorney's Office for the Southern District of New York, the SEC and the CFTC. Goldstein previously served as the chief of SDNY's public corruption unit, which is now part of a special FTX task force.
The ongoing, sprawling investigation into November's spectacular collapse of FTX is one of the highest-profile corporate crime cases in U.S. history. Prosecutors and regulators have alleged that Bankman-Fried orchestrated a yearslong scam, which involved misleading investors and misusing billions of dollars of FTX customer funds to pay off debts and expenses of Alameda, the trading firm he also founded.
Bankman-Fried pleaded not guilty on Tuesday to criminal charges. Before his downfall, the former FTX chief executive embraced his role as the face of a sprawling web of crypto businesses and rode it to stardom and riches. The 30-year-old was a billionaire and appeared on stages around the world flanked by politicians, celebrities and athletes, touting the exchange and digital assets.
Behind the scenes, Ellison, former chief executive of Alameda; Wang, who co-founded FTX; and Singh formed the backbone of Bankman-Fried's
Plea agreements for Ellison and Wang released last month said prosecutors will recommend reduced sentences for the pair if they provide "substantial assistance" to the investigation.
Damian Williams, the U.S. attorney for the Southern District of New York, signaled last month that authorities planned to dig further into Bankman-Fried's close associates as part of their investigation. "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," he said without mentioning anyone by name.
Singh, like Bankman-Fried, was a prolific donor to Democratic candidates. He's given more than $9.3 million since 2020, Federal Election Commission records show.
Prosecutors have alleged that Bankman-Fried, who according to U.S. bankruptcy filings received $1 billion in loans from Alameda, used and laundered customer funds through political donations, charitable giving and other investments.
Singh borrowed $543 million from Alameda, according to bankruptcy documents. Authorities haven't said that the money was used inappropriately.
— With assistance from Ava Benny-Morrison, Hannah Miller, Bill Allison and Amanda Albright.
