Unusual Whales

FTX's Nishad Singh Looks for Cooperation Deal with US Prosecutors Despite Not Yet Receiving Charges

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Per Bloomberg

The third associate of now-charged FTX founder Sam Bankman-Fried, Nishad Singh, is looking to enter a cooperation deal with US prosecutors despite not yet receiving any charges. This follows two other associates of SBF that pleaded guilty and are now cooperating with the authorities.

The first two associates of SBF that turned against him and are now cooperating with authorities are Caroline Ellison, ex-girlfriend and CEO of Alameda, and Gary Wang, the co-founder of FTX. Although both were released on a $250,000 bond, Manhattan US Attorney Damian Williams detailed the cooperation of both individuals in building a solid case against the FTX founder.

The former FTX engineering chief, Singh, attended a Southern District of New York US Attorney's Office's so-called proffer session. These meetings reportedly grant individuals limited immunity for sharing information with prosecutors.

Singh's attendance of a proffer session does not automatically lead to a cooperation agreement, and prosecutors still have to weigh in on how valuable the information actually is. Should prosecutors find the information shared useful, they could offer Singh a deal that would allow him to receive possible leniency for pleading guilty and cooperating.

While more information regarding the crypto exchange's spending is still unveiling, recent reports found that FTX spent $40 million on food, hotels, and travel, with an estimated $7 million on food alone in just nine months. SBF frequently spent $2,500 on lunch alone for himself and his staff.

The potential information that Singh could bring to the table would be related to the campaign finance side of FTX, as he is known as a Democrat mega-donor and has given $9.3 million since 2020 to Democratic candidates and committees. The former engineering chief also received hundreds of millions in loans from Alameda Research.

Despite no charges, Singh is being probed by the Securities and Exchange Commission and the Commodity Futures Trading Commission.

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