TLDR
- Former FTX engineering chief Nishad Singh has settled with the CFTC by agreeing to pay $3.7 million in disgorgement
- The settlement includes an eight-year registration prohibition and a five-year commodity trading restriction
- His cooperation with authorities led to reduced sanctions from regulatory bodies
- Singh earlier escaped incarceration, being sentenced to time served plus three years under supervision
- FTX founder Sam Bankman-Fried, imprisoned for 25 years, has submitted a motion requesting a retrial
Nishad Singh, who previously served as FTX’s head of engineering, has reached a settlement with the US Commodity Futures Trading Commission, agreeing to pay $3.7 million in connection with the cryptocurrency exchange’s spectacular collapse in November 2022.
Ex-FTX engineering chief Nishad Singh will have to return $3.7 million in illegal profits under a settlement with the US derivatives regulator over his role at the collapsed cryptocurrency exchange https://t.co/NWWZ06eXU4
— Bloomberg (@business) April 1, 2026
On April 1, 2026, the CFTC revealed the settlement terms through what regulators described as a supplemental consent order. The $3.7 million payment represents disgorgement, which means Singh is returning proceeds connected to regulatory violations instead of paying a separate financial penalty.
Additionally, Singh received an eight-year prohibition from registering with the CFTC and a five-year ban from participating in commodity trading markets. The registration restriction prevents him from securing any licensing required to operate within the industry.
CFTC enforcement chief David Miller explained that neither additional restitution nor civil monetary penalties were being pursued currently. Miller emphasized that the settlement terms acknowledge 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 had reached closure and noted the CFTC’s acknowledgment of his peripheral involvement in the misconduct.
Multiple Regulatory Bodies Pursued Singh
The CFTC initially brought charges against Singh in February 2023 on two counts: misappropriation fraud and facilitating fraud perpetrated by former FTX CEO Sam Bankman-Fried. Singh entered into a consent agreement in April 2023 and committed to assisting investigators.
Separately, the Securities and Exchange Commission brought its own action against Singh in February 2023, alleging misuse of customer assets. That matter concluded in December with an eight-year prohibition from the securities industry.
Federal prosecutors also brought criminal charges against Singh along with four other associates, including fraud and violations related to campaign finance laws. Despite facing potential decades of imprisonment, Singh’s cooperation with government officials and testimony against Bankman-Fried resulted in a sentence of time served plus three years of supervised release.
The FTX exchange imploded in November 2022, erasing billions of dollars in value and sparking criminal probes into its executive team.
FTX Founder Pursuing Retrial
Separately, Sam Bankman-Fried, FTX’s founder who is currently incarcerated serving 25 years after convictions on seven counts involving fraud and conspiracy, has submitted a motion requesting a new trial. The filing, which Bankman-Fried prepared himself, claims that crucial witness testimony was excluded from his 2023 proceedings.
The FTX Recovery Trust disclosed earlier this year that it planned to distribute $2.2 billion to creditors beginning in March 2026.
