United States federal prosecutors in Manhattan are closing in on SBF’s inner circle with the latest being Nishad Singh, a high-profile FTX director of engineering. If found guilty, Singh could be charged as soon as February, according to media outlet Bloomberg. While Singh has not appeared in any court proceedings, bankruptcy court documents reveal that he borrowed $543 million from Alameda.
The white-collar crime court in New York will have a hectic time deconstructing the FTX and Alameda scandal, which involves complex multi-chain transactions in a period of several years. Moreover, U.S authorities claim the FTX crisis began more than twelve months ago and the company was silently struggling.
Damian Williams, the US Attorney for the Southern District of New York, signaled last month that authorities planned to probe further into SBF’s inner circle as part of their investigation.
“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it. We are moving quickly and our patience is not eternal,” he said
Reportedly, Singh was involved in the 2022 United States midterm elections as a prolific donor. According to Federal Election Commission records, Singh donated more than $9.3 million since 2020 to Democratic aspirants.
His donations are, however, a drop in the ocean compared to SBF’s $1 billion in loan from Alameda, which authorities believe he laundered through political donations, charitable giving and other investments.
Notably, the Department of Justice recently announced plans to seize SBF’s half a-billion assets in Robinhood shares. Reportedly, the DoJ anticipates distributing the cash to creditors like BlockFi, which is currently under bankruptcy protection.
What Next for FTX Investors and Customers
Two months after FTX and Alameda filed for bankruptcy protection, stakeholders have been left in the dark about possible refunds. Commotions have erupted in lending companies, including DCG-backed Genesis Trading and Gemini’s Earn customers, following huge exposure on FTX.
Evidently, regulators and authorities will have challenging time-solving problems that are emanating from FTX and Alameda’s implosion. As such, FTT and FTX investors are likely to go unrefined for the next few years. Moreover, the next SBF hearing is slated for October, while he remains under his parent’s custody in California.
While FTX customers from the United States may get back their money soon, it is much more complicated for international investors who may never be refunded. As such, the cryptocurrency market is at the stake of further collapse as investors fear exchanges’ rug pulls.