Quick Overview
- Former FTX engineering chief Nishad Singh settled with the CFTC for $3.7 million in disgorgement payments
- Settlement includes a five-year commodity trading prohibition and an eight-year CFTC registration ban
- Penalties were lowered in recognition of Singh’s substantial cooperation with federal investigators
- Singh escaped incarceration earlier, receiving supervised release instead of prison time
- FTX founder Sam Bankman-Fried, imprisoned for 25 years, seeks retrial through new court filing
Nishad Singh, who previously led engineering operations at FTX, has reached a $3.7 million settlement with the US Commodity Futures Trading Commission to resolve allegations connected to the cryptocurrency platform’s spectacular implosion in late 2022.
Regulators disclosed the settlement agreement on April 1, 2026, implementing what they described as a supplemental consent decree. The $3.7 million payment represents disgorgement—requiring Singh to surrender proceeds linked to regulatory violations—rather than constituting a traditional penalty.
The settlement also imposes a five-year prohibition preventing Singh from participating in commodity futures markets and an eight-year restriction blocking him from CFTC registration. This registration restriction effectively prevents him from securing professional licensing within the regulated commodities sector.
CFTC enforcement division director David Miller noted that no supplementary restitution demands or civil penalties were applied in this resolution. He emphasized that the agreement acknowledges Singh’s active assistance to investigators.
“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 highlighted that regulators acknowledged his peripheral involvement in the misconduct.
Multiple Regulatory Bodies Pursued Singh
The CFTC initially brought charges against Singh in February 2023 on two counts: fraudulent misappropriation and complicity in fraud perpetrated by former FTX CEO Sam Bankman-Fried. Singh entered into a consent agreement in April 2023 and committed to assisting with ongoing investigations.
The Securities and Exchange Commission pursued parallel action against Singh in February 2023, alleging improper use of customer deposits. That proceeding concluded in December, yielding an eight-year prohibition from the securities industry.
Federal prosecutors additionally indicted Singh with four other associates on multiple counts including securities fraud and violations of campaign finance law. Despite facing potential decades of imprisonment, Singh provided extensive cooperation with government officials and offered testimony against Bankman-Fried. His sentence ultimately consisted of time already served plus three years under supervised release.
FTX’s catastrophic failure in November 2022 erased billions in valuation and launched extensive criminal probes into the company’s executive leadership.
Bankman-Fried Pursues Retrial
In related developments, FTX’s founder Sam Bankman-Fried, currently incarcerated while serving a 25-year sentence following convictions on seven fraud and conspiracy charges, has submitted a motion requesting a new trial. He personally filed the motion, contending that critical witness testimony was excluded from his 2023 proceedings.
The FTX Recovery Trust revealed earlier this year that it planned to disburse $2.2 billion to affected creditors during March 2026.
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