Nishad Singh, the former head of engineering at the collapsed cryptocurrency exchange FTX, has agreed to pay $3.7 million to settle a lawsuit with the U.S. Commodity Futures Trading Commission (CFTC). The settlement, announced on April 1, 2026, resolves charges related to his alleged role in the exchange's 2022 collapse and the misappropriation of user funds.
The supplemental consent order requires Singh to pay a disgorgement of $3.7 million. It also imposes significant professional restrictions: a five-year ban on trading in CFTC-regulated markets and an eight-year registration ban, which blocks him from obtaining a license to operate in the sector. David Miller, the CFTC’s Director of Enforcement, stated that the penalties reflect the severity of the violations but also acknowledge Singh's cooperation with authorities, ruling out additional restitution or civil monetary penalties for now.
"The defendant engaged in, and aided, significant violations of the Act and CFTC regulations as the former FTX head of engineering, and the consent orders reflect the severity of these violations," Miller said. "But this resolution also reflects the Commission’s commitment to rewarding and incentivizing material assistance in Division investigations."
Singh was originally charged by the CFTC in February 2023 with two counts: fraud by misappropriation and aiding and abetting fraud committed by former FTX CEO Sam Bankman-Fried. He entered into a consent order in April 2023, was found liable, and agreed to cooperate with investigators. His attorneys stated they were "pleased that the CFTC recognized our client’s limited role in the underlying conduct and his extensive cooperation."
This settlement concludes one of several legal actions against Singh. In a separate case with the Securities and Exchange Commission (SEC), settled in December, he received an eight-year industry ban. Following FTX's bankruptcy, U.S. prosecutors also indicted him on charges including fraud and campaign finance violations. After testifying against Bankman-Fried and cooperating, he was sentenced to time served and three years of supervised release, avoiding a potential decades-long prison term.
