Former FTX head of engineering Nishad Singh has agreed to pay $3.7 million to settle a lawsuit with the US Commodity Futures Trading Commission over his role in the exchange’s collapse.
The settlement includes disgorgement of $3.7 million, a five-year trading ban and an eight-year registration ban, preventing Singh from operating in regulated markets.
“The defendant engaged in, and aided, significant violations of the Act and CFTC regulations,”
Said CFTC enforcement director, David Miller.
The regulator said no additional penalties were imposed due to Singh’s extensive cooperation, which included assisting investigations into FTX’s misuse of customer funds.
Singh had previously been charged with fraud and aiding misconduct linked to former FTX CEO Sam Bankman-Fried, but his cooperation helped him avoid a lengthy prison sentence.
He also settled a separate case with the Securities and Exchange Commission, receiving an additional industry ban tied to violations of securities laws.
FTX’s collapse in November 2022 triggered widespread losses across the crypto market and led to multiple legal actions against its leadership, marking one of the industry’s largest scandals.