Key Takeaways
- Former FTX engineering chief Nishad Singh has settled with the CFTC for $3.7 million in disgorgement
- Singh accepted a five-year commodity trading prohibition and an eight-year ban from CFTC registration
- His cooperation with authorities led to reduced penalties from regulators
- Singh escaped incarceration earlier, receiving supervised release instead of prison time
- Former CEO Sam Bankman-Fried, now serving a 25-year sentence, has requested a new trial
Nishad Singh, who served as FTX’s top engineering executive, has reached an agreement to pay $3.7 million to resolve allegations filed by the US Commodity Futures Trading Commission stemming from the cryptocurrency platform’s implosion in late 2022.
On April 1, 2026, the CFTC disclosed the resolution through a supplemental consent decree. The $3.7 million payment represents disgorgement, which requires Singh to surrender proceeds connected to the regulatory violations instead of facing punitive fines.
The settlement also imposes a five-year prohibition preventing Singh from participating in commodity trading activities and an eight-year restriction barring him from seeking CFTC registration. This registration restriction effectively prevents him from acquiring credentials needed to work in the regulated commodity space.
According to CFTC enforcement division head David Miller, the agency opted not to pursue additional restitution or monetary penalties. Miller emphasized that the decision acknowledged Singh’s substantial assistance during the investigation process.
“The defendant engaged in, and aided, violations of the Act and CFTC regulations as the former FTX head of engineering,” Miller said. “But this resolution also reflects the Commission’s commitment to rewarding and incentivizing material assistance in Division investigations.”
Legal representatives for Singh expressed appreciation that the case reached closure and noted that regulators acknowledged his comparatively minor involvement in the misconduct.
Multiple Regulatory Bodies Pursued Singh
In February 2023, the CFTC initially brought charges against Singh on two separate counts: fraudulent misappropriation and providing assistance to fraud perpetrated by former FTX CEO Sam Bankman-Fried. Singh signed a consent agreement in April 2023 and committed to assisting investigators.
The Securities and Exchange Commission launched its own legal action against Singh in February 2023, alleging improper use of customer deposits. That matter concluded in December with an eight-year prohibition from the securities industry.
Federal prosecutors additionally indicted Singh along with four other associates on various charges spanning fraud and violations of campaign finance laws. Despite facing the possibility of lengthy imprisonment, Singh collaborated with law enforcement and provided testimony against Bankman-Fried. He ultimately received credit for time served plus three years of monitored release.
The cryptocurrency exchange FTX disintegrated in November 2022, erasing billions in asset valuations and sparking criminal probes into its executive team.
Former CEO Pursues Retrial
In parallel developments, Sam Bankman-Fried, the exchange’s creator who is currently incarcerated while serving a 25-year sentence for seven convictions related to fraud and conspiracy, has submitted a request for a new trial. Filing the motion personally, Bankman-Fried contends that critical witness statements were excluded from his 2023 proceedings.
The FTX Recovery Trust revealed earlier this year plans to return $2.2 billion to creditors beginning in March 2026.
