In a new development in the case of the collapsed crypto exchange FTX, another former member of Sam Bankman-Fried’s inner circle, Nishad Singh, is reportedly planning to plead guilty to US criminal charges related to alleged multiyear fraud at the exchange, as reported by Bloomberg.
Sources familiar with the matter have stated that Singh is currently in negotiations with Manhattan prosecutors to reach a plea deal, which could involve cooperating with authorities.
If the plea deal with Singh is finalized, it could further distance Bankman-Fried from his associates as he awaits trial on an eight-count indictment.
Two of his former top associates, Gary Wang and Caroline Ellison, have already pleaded guilty and are cooperating with prosecutors.
Bankman-Fried’s representative declined to comment on the matter. In addition to criminal charges, Singh may also face lawsuits from the Commodity Futures Trading Commission and the Securities and Exchange Commission over his alleged involvement in the scheme.
However, both agencies have declined to comment on the matter. Representatives from the Manhattan federal prosecutor’s office and Singh’s lawyer, Andrew D. Goldstein, have also declined to comment.
The deal with Singh has not yet been finalized, and further developments in the case are expected in the coming weeks.
FTX Warns Creditors Against Unauthorized Debt Tokens
In another related news, the bankrupt exchange has issued a warning to its creditors about unauthorized debt tokens, including the Justin Sun-backed FTX User Debt Token (FUD).
FUD is a debt token issued by Debt DAO that claims to issue its users’ debt as a bond token. At launch, 20 million FUD was minted, with plans to mint additional tokens once FTX confirmed the debt amount.
However, FTX took to Twitter on February 17th to disassociate itself from the project and warn creditors against dealing with unauthorized schemes. The tweet said:
The FTX Debtors remind stakeholders to be on alert for scams from entities claiming to be affiliated with FTX. The FTX Debtors have not issued any debt token and any such offers are unauthorized.”
FTX’s warning highlights the risks involved in dealing with unauthorized tokens and the importance of exercising caution when investing in crypto.
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