CFTC Resolves Action Against Former FTX Head of Engineering

WASHINGTON - The Commodity Futures Trading Commission today announced the U.S. District Court for the Southern District of New York entered a supplemental consent order against Nishad Singh, the former head of engineering at FTX.

The order imposes disgorgement of $3.7 million, requires Singh to continue cooperating with the Commission, and imposes a five-year trading ban and an eight-year registration ban - both from the date of entry of the initial consent order.

The initial consent order and supplemental consent order resolve the CFTC's enforcement action against Singh. [See CFTC Press Release No. 8669-23]

The court entered an initial consent order in April 2023 against Singh, finding him liable on both counts of the CFTC's complaint, including fraud by misappropriation and aiding and abetting such fraud. It also permanently enjoined Singh from violating the antifraud provisions of the Commodity Exchange Act and Commission regulations as charged, and from willfully aiding and abetting such violations.

"The injunctions and monetary relief imposed here demonstrate the significant benefits that may be achieved through cooperating with the CFTC," said Director of Enforcement David Miller. "The defendant engaged in, and aided, significant violations of the Act and CFTC regulations as the former FTX head of engineering, and the consent orders reflect the severity of these violations. But this resolution also reflects the Commission's commitment to rewarding and incentivizing material assistance in Division investigations."

The supplemental consent order acknowledges that the Commission is not seeking restitution and/or a civil monetary penalty at this time, based in part upon Singh's cooperation in the Commission's investigation and related proceedings, including the parallel criminal action, United States v. Singh, Crim. No. 22-cr-673 (S.D.N.Y. 2023), in which Singh pled guilty to six counts, including conspiracy to commit commodities fraud.