US federal prosecutors in Manhattan are closing in on SBF’s inner circle and the latest is Nishad Singh, a high-profile FTX engineering director. If he is found guilty, Singh could be charged as soon as February, according to the Bloomberg news outlet. While Singh has not appeared in any court proceedings, bankruptcy court documents reveal that he borrowed $543 million from Alameda.
The white-collar crime court in New York will have a hectic time deconstructing the FTX and Alameda scandal, which involves complex multi-chain transactions over a period of several years. In addition, the US authorities claim that the FTX crisis began more than twelve months ago and that the company was struggling in silence.
Damian Williams, the US Attorney for the Southern District of New York, said last month that authorities planned to dig deeper into SBF’s inner circle as part of their investigation.
“If you engaged in misconduct at FTX or Alameda, now is the time to come forward. We are moving fast and our patience is not eternal,” she said.
Singh reportedly contested the 2022 US midterm elections as a prolific donor. According to Federal Election Commission records, Singh has donated more than $9.3 million since 2020 to Democratic hopefuls.
His donations, however, are a drop in the bucket compared to Alameda’s $1 billion SBF loan, which authorities believe he laundered through political donations, charitable donations and other investments.
In particular, the Department of Justice recently announced plans to seize SBF’s 500 million assets in Robinhood shares. The Justice Department reportedly anticipates distributing the cash to creditors such as BlockFi, which is currently under bankruptcy protection.
What’s Next for FTX Investors and Clients
Two months after FTX and Alameda filed for bankruptcy, interested parties know nothing about potential refunds. Shocks have erupted at lending companies, including DCG-backed Genesis Trading clients and Gemini’s Earn, following a large exposure on FTX.
Clearly, regulators and authorities will have challenging time resolution issues emanating from the FTX and Alameda implosion. As such, it is likely that FTT and FTX investors will not refine themselves for years to come. Additionally, SBF’s next hearing is scheduled for October, while he remains in the custody of his parents in California.
While US FTX clients may get their money back soon, it’s much more complicated for international investors who may never get paid back. As such, the cryptocurrency market is at risk of further collapse as investors fear that the exchanges will move.
This post US Prosecutors Investigate Former FTX Engineer Nishad Singh; A big blow for SBF?
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