A third former FTX executive is preparing to plead guilty to criminal charges, Bloomberg reported.
Nishad Singh, the former director of engineering at FTX, is hammering out a deal with prosecutors to plead guilty to criminal charges in connection with his role at the now-bankrupt crypto exchange. The deal is not finalized, according to Bloomberg.
Singh would be the third member of Sam Bankman-Fried’s inner circle to plead guilty and cooperate with prosecutors, following FTX Co-Founder Gary Wang and former Alameda Research CEO Caroline Ellison.
Bankman-Fried has pleaded not guilty to a litany of criminal charges, including fraud, and is awaiting an October trial. The former CEO, who is accused of mishandling customer funds at the company, could be sentenced to more than 100 years in jail if he is convicted on all counts.
FTX was once valued at $32 billion and filed for bankruptcy protection in November. The firm has an estimated 9 million customers and could owe as much as $3.1 billion to its top 50 creditors.
Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.
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