U.S. prosecutors are reportedly investigating a third member of Sam Bankman-Fried’s inner circle.
Prosecutors are investigating bankrupt cryptocurrency exchange FTX’s former engineering director, Nishad Singh, to see if he had a role in the alleged fraud conducted by FTX and its affiliated trading firm Alameda Research, Bloomberg reported Friday (Jan. 6), citing unnamed sources.
The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are also investigating Singh, according to the report.
Singh hasn’t been accused of wrongdoing and it is not known if he is cooperating with authorities.
Singh once lived with Bankman-Fried in a Bahamas penthouse and was part of Bankman-Fried’s inner circle along with former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, according to the report.
Ellison and Wang pleaded guilty in December to charges levied against them for their roles in the implosion of FTX and its affiliated companies and are cooperating with authorities.
The two will likely be key witnesses in the trial of Bankman-Fried, given their proximity to him, knowledge of the inner workings of FTX, admissions of guilt and their stated willingness to cooperate with the prosecution.
In a public video regarding the FTX case that was posted Dec. 21, U.S. Attorney Damian Williams said, “Today’s announcement will not be our last. 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.”
The report about investigations of Singh came a day after Bankman-Fried’s lawyers argued in a U.S. court filing that Robinhood stock seized by the U.S. should be returned to him as they are his property and are not part of the FTX bankruptcy case.
They added that Bankman-Fried needs some of the assets to pay for his criminal defense.
On Tuesday, Bankman-Fried pleaded “not guilty” to the criminal charges brought against him. In a Manhattan federal courtroom, he admitted no guilt in the face of charges he defrauded investors. The plea had been expected, and he could change his plea later.
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