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Court imposes $3.7 million fine on former chief engineer of collapsed FTX exchange., 2026/04/02 15:59:56
The Southern District Court of New York has mandated that Nishad Singh, the former chief engineer of the collapsed cryptocurrency exchange FTX, pay a fine of $3.7 million to settle allegations from the U.S. Commodity Futures Trading Commission (CFTC).
The American regulatory body accused Singh of facilitating the downfall of FTX and misappropriating customer funds from the platform. In addition to the financial penalty, the court has prohibited Singh from trading in markets for a period of five years and imposed an eight-year ban on registration, preventing him from obtaining a license for trading activities.
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The agency clarified that in April 2023, the court issued an initial ruling to resolve the dispute concerning Singh, finding him guilty on both counts of the CFTC’s complaint, which included fraud through the misappropriation of funds and aiding in fraud. The court also permanently barred Singh from violating provisions of U.S. commodity exchange law related to fraud prevention.
David Miller, the director of the CFTC’s enforcement division, stated that due to Singh’s cooperation with authorities during the investigation into the FTX case, the regulator will not seek additional restitution or administrative fines from the former chief engineer.
FTX founder Sam Bankman-Fried is currently serving a 25-year sentence for fraud charges. Prosecutors allege that he unlawfully misappropriated customer funds, transferring them to the account of the affiliated hedge fund Alameda Research. In February, Bankman-Fried attempted to have the FTX case reviewed, but the prosecution maintains that there are no legal grounds for such a request.
