Nishad Singh, the former head of engineering at collapsed crypto exchange FTX, has agreed to pay $3.7 million to settle an enforcement action brought by the US Commodity Futures Trading Commission (CFTC). The settlement, outlined in a supplemental consent order, also imposes a five-year ban on trading in regulated markets and an eight-year registration ban that prevents Singh from obtaining a license to operate in the sector. The CFTC confirmed the terms in a statement issued on Wednesday, noting that the order resolves the regulator’s full enforcement action against Singh.
The CFTC’s director of enforcement, David Miller, indicated that no additional restitution or civil monetary penalties would be pursued at this time, explaining that the current terms reflect Singh’s cooperation with authorities. Miller acknowledged that Singh had engaged in and aided significant violations of the law in his capacity as FTX’s engineering chief, but said the resolution also demonstrated the commission’s commitment to rewarding meaningful assistance in its investigations. The $3.7 million payment is classified as disgorgement rather than a punitive fine.
Attorneys representing Singh said their client was relieved the matter had concluded and expressed satisfaction that the CFTC had recognized his limited role in the underlying conduct as well as his extensive cooperation, according to reports. The CFTC had originally sought a broader range of penalties when it first charged Singh in February 2023, including restitution, civil monetary penalties, and permanent trading and registration bans. Singh entered into an initial consent order in April 2023, at which point he was found liable and agreed to cooperate with investigators.
The charges against Singh stemmed from the dramatic collapse of FTX in November 2022, an event that sent significant disruption through the broader cryptocurrency industry. The bankruptcy erased billions of dollars in market liquidity, undermined user confidence, and led authorities to accuse the exchange’s leadership of widespread fraud. The CFTC specifically charged Singh with two counts: fraud by misappropriation and aiding and abetting fraud committed by former FTX chief executive Sam Bankman-Fried.
Singh also faced a separate action brought by the Securities and Exchange Commission (SEC) in February 2023, which accused him of misusing customer funds and committing fraud by misappropriation in violation of securities laws. That case was settled in December, with Singh receiving an eight-year ban from the industry. The dual regulatory proceedings reflect the broad scope of enforcement activity that followed FTX’s collapse.
On the criminal side, US prosecutors indicted Singh alongside four colleagues on charges that included fraud and campaign finance violations, with Singh facing the possibility of decades in prison if convicted. However, after testifying against Bankman-Fried and cooperating extensively with prosecutors, Singh received a sentence of time served along with three years of supervised release. His cooperation across multiple proceedings appears to have been a central factor in the comparatively reduced penalties he ultimately received from both regulators and the courts.
Originally reported by CoinTelegraph.
