Key Points
- Former FTX engineering director Nishad Singh will pay $3.7 million in disgorgement under a CFTC settlement agreement
- The settlement includes a five-year prohibition from commodity trading and an eight-year ban on CFTC registration
- Enforcement authorities reduced sanctions based on Singh’s substantial cooperation throughout the investigation
- Singh previously escaped imprisonment, instead receiving credit for time served plus three years of supervised release
- FTX founder Sam Bankman-Fried, now serving a 25-year sentence, has requested a new trial through a self-filed motion
Nishad Singh, who previously served as FTX’s head of engineering, has reached a $3.7 million settlement with the US Commodity Futures Trading Commission to resolve allegations stemming from the cryptocurrency exchange’s catastrophic failure in November 2022.
The regulatory agency disclosed the settlement arrangement on April 1, 2026, describing it as a supplemental consent order. Singh’s $3.7 million payment constitutes disgorgement, requiring him to surrender funds connected to regulatory violations without additional monetary penalties.
As part of the agreement, Singh accepted a five-year prohibition from participating in commodity market trading activities and an eight-year restriction preventing him from seeking CFTC registration. This registration prohibition effectively bars him from obtaining professional licensing within the regulated commodities sector.
CFTC enforcement division head David Miller confirmed that no supplementary restitution payments or civil fines were levied currently. He emphasized that the resolution accounts for Singh’s 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 the CFTC’s acknowledgment of his minimal involvement in the core misconduct.
Multiple Regulatory Actions Targeted Singh
The CFTC initially brought charges against Singh in February 2023 on two counts: fraudulent misappropriation and assisting and facilitating fraud perpetrated by former FTX CEO Sam Bankman-Fried. He submitted a consent order in April 2023 and committed to assisting investigators.
The Securities and Exchange Commission pursued a parallel enforcement action against Singh in February 2023, alleging improper customer fund usage. That proceeding concluded in December with an eight-year prohibition from the securities industry.
Federal prosecutors additionally indicted Singh along with four other associates on multiple charges encompassing fraud and violations of campaign finance laws. Despite facing potential decades of incarceration, he provided cooperation to government authorities and delivered testimony against Bankman-Fried. His sentence ultimately consisted of time already served combined with three years of supervised release.
FTX’s implosion in November 2022 eliminated billions in market capitalization and sparked criminal inquiries into the exchange’s executive team.
Bankman-Fried Pursues New Trial
Separately, FTX’s creator Sam Bankman-Fried, who is currently incarcerated serving a 25-year sentence following conviction on seven fraud and conspiracy charges, has submitted a request for a new trial. He filed the petition independently, contending that critical witness testimony was excluded from his 2023 proceedings.
The FTX Recovery Trust revealed earlier this year its plan to disburse $2.2 billion to creditors during March 2026.
