Nishad Singh Asks FTX Co-Founder to Claim Innocence
Former FTX director of engineering, Nishad Singh, requested co-founder Sam Bankman-Fried to assert his innocence after cracks were exposed within the crypto exchange. This revelation comes from Michael Lewis’s book “Going Infinite,” which explores the downfall of FTX. Singh, Bankman-Fried, and co-founder Gary Wang had a conversation about how to handle law enforcement inquiries. Singh inquired about the best course of action in a prisoner’s dilemma scenario where there is no guarantee that everyone will claim innocence. Bankman-Fried responded by saying there was no reason to assume criminal intent.
Singh persisted and asked Bankman-Fried to explicitly state that he had no knowledge of the situation. However, Singh argued that this approach wouldn’t work for him as there was code-based evidence of his actions.
Singh Pleads Guilty
In February 2023, Singh had a change of heart and decided to plead guilty to criminal charges related to FTX’s collapse. He also agreed to cooperate with law enforcement regarding the matter. Two weeks later, the Securities and Exchange Commission charged Singh with defrauding customers by embezzling $6 million from FTX customer funds for personal use.
Hot Take: Nishad Singh’s Role in FTX’s Demise
Nishad Singh’s involvement in the collapse of FTX raises significant questions about the integrity and trustworthiness of individuals within the cryptocurrency industry. His attempt to seek assurance of innocence from FTX co-founder Sam Bankman-Fried indicates a potential cover-up or evasion of responsibility. The subsequent guilty plea and charges filed against Singh further confirm his misconduct.
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