Crypto News

US authorities are investigating FTX engineer Singh-Bloomberg News

(Reuters) – US authorities are investigating bankrupt crypto exchange FTX’s chief engineer Nishad Singh, increasing pressure on founder Sam Bankman-Fried’s inner circle, Bloomberg News reported on Thursday, citing people familiar with the matter .

Singh could face indictments later this month if federal prosecutors in Manhattan find he played a role in FTX and trading firm Alameda Research’s alleged multi-year plot to defraud investors and customers, the report added.

Authorities have not accused Singh of any wrongdoing. It is not clear whether Singh is cooperating with US officials, the report said.

A spokesman for the US Attorney’s Office in Manhattan declined to comment.

The Securities and Exchange Commission and Commodity Futures Trading Commission are also investigating Singh, the report said, citing a source.

An attorney for Singh, Andrew D. Goldstein, did not immediately respond to a request for comment. The SEC and CFTC did not immediately respond to requests for comment. Bankman-Fried’s attorneys did not immediately respond to a request for comment.

In mid-2020, Singh tweaked the cryptocurrency exchange’s software to exempt Alameda Research, a hedge fund owned by Bankman-Fried, from a feature on the trading platform that would have automatically sold Alameda’s assets if it lost too much borrowed money. Reuters reported last month.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Matthew Lewis)

Source: Crypto News Deutsch

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