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Nishad Singh of FTX pleaded guilty, apologizes for actions

Avatar photo Alice Blake on September 5, 2023

Nishad Singh – Despite the fact that the crypto exchange site FTX has been down for months, the crackdown on its leadership continues.

Nishad Singh, a former FTX executive, recently pled guilty.

He is currently assisting the FBI investigation into the alleged billion-dollar scam at the once-famous exchange.

The news

Nishad Singh, the platform’s former director of engineering, has pled guilty to six conspiracy counts, including:

  • Conspiracy to commit wire fraud
  • Conspiracy to commit money laundering
  • Conspiracy to violate federal campaign finances laws

Singh is the third top executive and close confidante of Sam Bankman-Fried to enter a guilty plea.

He joins Gary Wang, the exchange’s co-founder, and Caroline Ellison, the former head of Alameda Research, the exchange’s sister hedge fund.

Wang and Ellison entered pleas of guilty in 2022 and are currently collaborating against SBF.

“Today’s guilty plea underscores once again that the crimes at FTX were vast in scope and consequence,” said Damian Williams, the US attorney for the Southern District of New York.

“They rocked our financial markets with a multibillion-dollar fraud. And they corrupted our politics with tens of millions of dollars in illegal straw campaign contributions.”

“The crimes demand swift and certain justice, and that is exactly what we are seeking in the Southern District of New York.”

Penalties

Nishad Singh agreed to settle after the Securities and Exchange Commission and the Commodities Futures Trading Commission filed civil charges against him.

Singh consented to be barred from serving as an officer or director as part of the SEC agreement.

To finalize the agreement, a court must sign off on it and decide how much fines and disgorgement Nishad Singh must pay in addition to the period of the ban.

Nonetheless, Singh did not challenge his responsibility, according to the CFTC.

Restitution, disgorgement, and permanent trading restrictions are among the remedies sought by the agency.

Apologies

Lawyers Andrew Goldstein and Russell Capon, Nishad Singh’s attorneys, issued an apology statement on Tuesday.

“Nishad is deeply sorry for his role in this and has accepted responsibility for his actions.”

“He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case.”

Read also: Meta proactive in adding extra protection to teens online

The head of the company

As Nishad Singh, Gary Wang, and Caroline Ellison face harsh punishment, the head of their torn empire is still waiting for his punishment.

Sam Bankman-Fried is facing 12 criminal charges for his participation in one of the largest financial thefts in history, according to prosecutors and the international community.

Despite the overwhelming evidence, SBF pleaded not guilty to some of the allegations.

He will appear in court at some point in the future, with a date still to be determined on some of the allegations.

Sam Bankman-Fried is also freed on a $250 million bond.

The allegations

Prosecutors claim that Sam Bankman-Fried, Nishad Singh, Gary Wang, and Caroline Ellison (among others) misappropriated client accounts at FTX.

They allegedly used the money for the following:

  • Strengthen Alameda Research’s business operations
  • Self Enrichment
  • Create venture investments
  • Buy the influence of US politicians

Authorities also stated that SBF raised around $1.8 billion from investors.

Political influence

An indictment against him was released last week, revealing that prosecutors claimed more than 300 political donations were made.

The gifts were apparently made in a bid to influence bitcoin law and regulation.

Moreover, they were made in the identities of two FTX workers designated in the indictments as CC-1 and CC-2.

CC-1 is Nishad Singh, and CC-2 is Ryan Salame, according to persons familiar with the matter and federal and state election records.

Prosecutors claim Singh was picked as the face of left-wing contributions.

According to the indictment, SBF plotted to donate at least a million dollars to a super PAC supporting a candidate running for a US House seat who seemed to be pro-LGBTQIIA+ issues.

A SBF political strategist reportedly asked Nishad Singh to take the fall for the contribution, telling him:

“In general, you being the center left face of our spending will mean you giving to a lot of woke *** for transactional purposes.”

Prosecutors said that Nishad Singh showed uneasiness but acknowledged that no one at the firm trusted someone who was “bi/gay” and capable of making the contribution.

Moreover, an FTX employee was charged with sending $107,000 from SBF’s account to the New York Democratic Committee before the 2022 midterm elections.

According to the indictment, they were directed to amend it and say it originated from CC-1.

On October 28, Nishad Singh contributed $107,000 to the committee, according to records.

Nishad Singh of FTX pleaded guilty, apologizes for actions

Avatar photo Alice Blake on July 10, 2023

Nishad Singh – Despite the fact that the crypto exchange site FTX has been down for months, the crackdown on its leadership continues.

Nishad Singh, a former FTX executive, recently pled guilty.

He is currently assisting the FBI investigation into the alleged billion-dollar scam at the once-famous exchange.

The news

Nishad Singh, the platform’s former director of engineering, has pled guilty to six conspiracy counts, including:

  • Conspiracy to commit wire fraud
  • Conspiracy to commit money laundering
  • Conspiracy to violate federal campaign finances laws

Singh is the third top executive and close confidante of Sam Bankman-Fried to enter a guilty plea.

He joins Gary Wang, the exchange’s co-founder, and Caroline Ellison, the former head of Alameda Research, the exchange’s sister hedge fund.

Wang and Ellison entered pleas of guilty in 2022 and are currently collaborating against SBF.

“Today’s guilty plea underscores once again that the crimes at FTX were vast in scope and consequence,” said Damian Williams, the US attorney for the Southern District of New York.

“They rocked our financial markets with a multibillion-dollar fraud. And they corrupted our politics with tens of millions of dollars in illegal straw campaign contributions.”

“The crimes demand swift and certain justice, and that is exactly what we are seeking in the Southern District of New York.”

Penalties

Nishad Singh agreed to settle after the Securities and Exchange Commission and the Commodities Futures Trading Commission filed civil charges against him.

Singh consented to be barred from serving as an officer or director as part of the SEC agreement.

To finalize the agreement, a court must sign off on it and decide how much fines and disgorgement Nishad Singh must pay in addition to the period of the ban.

Nonetheless, Singh did not challenge his responsibility, according to the CFTC.

Restitution, disgorgement, and permanent trading restrictions are among the remedies sought by the agency.

Apologies

Lawyers Andrew Goldstein and Russell Capon, Nishad Singh’s attorneys, issued an apology statement on Tuesday.

“Nishad is deeply sorry for his role in this and has accepted responsibility for his actions.”

“He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case.”

Read also: Meta proactive in adding extra protection to teens online

The head of the company

As Nishad Singh, Gary Wang, and Caroline Ellison face harsh punishment, the head of their torn empire is still waiting for his punishment.

Sam Bankman-Fried is facing 12 criminal charges for his participation in one of the largest financial thefts in history, according to prosecutors and the international community.

Despite the overwhelming evidence, SBF pleaded not guilty to some of the allegations.

He will appear in court at some point in the future, with a date still to be determined on some of the allegations.

Sam Bankman-Fried is also freed on a $250 million bond.

The allegations

Prosecutors claim that Sam Bankman-Fried, Nishad Singh, Gary Wang, and Caroline Ellison (among others) misappropriated client accounts at FTX.

They allegedly used the money for the following:

  • Strengthen Alameda Research’s business operations
  • Self Enrichment
  • Create venture investments
  • Buy the influence of US politicians

Authorities also stated that SBF raised around $1.8 billion from investors.

Political influence

An indictment against him was released last week, revealing that prosecutors claimed more than 300 political donations were made.

The gifts were apparently made in a bid to influence bitcoin law and regulation.

Moreover, they were made in the identities of two FTX workers designated in the indictments as CC-1 and CC-2.

CC-1 is Nishad Singh, and CC-2 is Ryan Salame, according to persons familiar with the matter and federal and state election records.

Prosecutors claim Singh was picked as the face of left-wing contributions.

According to the indictment, SBF plotted to donate at least a million dollars to a super PAC supporting a candidate running for a US House seat who seemed to be pro-LGBTQIIA+ issues.

A SBF political strategist reportedly asked Nishad Singh to take the fall for the contribution, telling him:

“In general, you being the center left face of our spending will mean you giving to a lot of woke *** for transactional purposes.”

Prosecutors said that Nishad Singh showed uneasiness but acknowledged that no one at the firm trusted someone who was “bi/gay” and capable of making the contribution.

Moreover, an FTX employee was charged with sending $107,000 from SBF’s account to the New York Democratic Committee before the 2022 midterm elections.

According to the indictment, they were directed to amend it and say it originated from CC-1.

On October 28, Nishad Singh contributed $107,000 to the committee, according to records.

IPO slowdown continues to spread in 2023

Avatar photo Jeah Lorraine Adams on April 3, 2023

…

IPO — 2022 has been a disappointing year for the economy as a whole due to unforeseen elements like inflation.

As a result, there has been a slowdown in global initial public offerings.

While there were forecasts of an economic rebound for 2023, the Federal Reserve’s continued hike rate indicates that inflation remains a problem.

Furthermore, the IPO slowdown has continued into the first quarter of the year, and it is expected to endure in the coming months.

The news

According to reports, one reason behind the IPO slowdown is that companies are waiting out the effects of the following:

  • The volatile stock markets
  • Higher interest rates
  • Inflation
  • Uncertainty around the banking crisis

On Thursday, an EY report found that 299 companies worldwide went public in the past three months, which is down 8% compared to the same period last year.

Additionally, funds raised from the listing fell by 61% year-on-year to $21.5 billion.

EY reports that the slump follows a 45% drop in IPOs in 2022.

“Through just one quarter of 2023, it was more of the same for the stuttering global IPO market,” the firm said in a released statement.

“Any initial euphoria at the start of the year was quickly dampened by the unexpected inflation and interest rate outlook, with the mood further stifled by the latest turmoil in the global banking system.”

Fears

For the past couple of months, investors have been struggling with a higher cost for living and higher interest rates.

Recently, their concerns have grown following a historic upheaval in the banking industry that led to emergency interventions for some prominent financial institutions including:

  • Credit Suisse
  • First Republic Bank
  • Signature Bank
  • Silicon Valley Bank

According to the EY report, the signs indicate that companies are holding out for the stock markets to stabilize and rebound before they list.

Read also: China is spending billions to bail out loans

The banking crisis

In early march, the United States witnessed the second largest US bank failure since the 2008 financial crisis.

Silicon Valley Bank customers quickly pulled their money out before US regulators took over.

However, the collapse created a domino effect that panicked markets and mounted up weight on weaker financial institutions that had already been struggling with the increasing interest rates.

Signature Bank followed a week later before First Republic Bank hit another crisis.

Before a major financial crisis could erupt, central banks and several major players in the industry stepped in with emergency cash to keep the banks afloat.

Regardless, markets have remained on edge.

2022 market

In late 2022, IPO research firm Renaissance Capital reported the slowest period for the IPO market last seen in 2011.

The slowdown, while disappointing, still sparked some hope and optimism that the traditional IPO market would turn around.

However, IPOs for some of the most prospective startups seemed unlikely.

For example, TikTok parent company ByteDance has a significant value, but due to the economic tensions between the US and China, a stock listing isn’t anticipated to happen soon.

Furthermore, Chinese firms could opt to go public in Asia, namely Hong Kong or Shanghai, instead of New York.

US regulators also scrutinized publicly traded Chinese companies in 2022.

For example, the SEC investigated the IPO of Didi, China’s ride hailing app.

2023 Asia market

Asia Pacific EY IPO leader Ringo Choi revealed there was a backlog of firms interested in going public.

According to Choi, there are over 800 companies in the pipeline in mainland China.

However, he also noted that firms worldwide are biding their time after getting discouraged by a lack of returns for companies that went public in the last few months.

“Most of them report a loss,” Choi said. “People start to worry [and say], ‘Well, what’s the meaning for getting an IPO?’ Why don’t they wait?”

He expects the decline to carry into the summer, but things could also turn around with several factors helping investors regain confidence, including:

  • Peaking inflation
  • Softening energy prices
  • The rebound in mainland China’s economy

Optimism

Ringo Choi believes the global market would recover in the second half of 2023 after already hitting bottom.

“We’re lying on the floor,” he said. “It’s very easy for us to have a rebound.”

He also noted that governments worldwide are trying to promote IPOs in their respective jurisdictions, which could help spark a revival.

John Lee, Hong Kong’s Chief Executive, recently traveled to Saudi Arabia, urging companies to consider listings.

“Once there is evidence of a more stable market with higher certainty, investor confidence should return,” EY wrote in its statement.

 

Crypto pressed by regulators in 2023

Avatar photo Alice Blake on February 16, 2023

…

Crypto – The collapse of the cryptocurrency exchange platform FTX in November gave rise to what has been nicknamed the “Lehman moment” by many.

When one’s business expands to everyone, it is said to be having a Lehman moment.

It alludes to the 2008 collapse of Lehman Brothers, whose bankruptcy also created an issue for the entire world.

The crypto sector, meanwhile, may be considered to have experienced a contagion when FTX went bankrupt.

Public outcry was used to provide regulators who were reluctant to act on a more exact target and a more powerful reason.

Since then, the cryptocurrency industry seems to be following the Dodd-Frank Act’s guidelines, which may stop further risk-taking in an effort to avoid additional financial risks.

The market

Since the advent of cryptocurrencies, the sector has developed and grown into a trillion-dollar industry.

The market is being handled by an inexperienced regulatory infrastructure, and many people are wary of the idea that cryptocurrencies may replace traditional financial instruments in the future.

State and federal officials have stepped up their talk and attempts to control the growing business since the FTX bankruptcy.

Major crypto corporations, however, are not very pleased with the efforts.

The Senate Committee on Banking, Housing, and Urban Affairs convened a hearing on Tuesday to discuss the requirement for further financial protections.

Sherrod Brown, the committee’s chairman, opened the meeting by saying:

“While crypto contagion didn’t infect the broader financial system, we saw glimpses of the damage it could have done if crypto migrated into the banking system.”

“These crypto catastrophes have exposed what many of us already knew: digital assets – cryptocurrencies, stablecoins, and investment tokens – are speculative products run by reckless companies that put Amercians’ hard-earned money at risk.”

Stablecoins

The hearing was called after Paxos, a cryptocurrency business, was told to stop minting a significant stablecoin by New York’s top financial regulator.

The demand just made the crypto space more restricted.

Digital currencies called stablecoins maintain a 1:1 backing from fiat money.

Paxos said on Monday that the New York State Department of Financial Services was instructed to cease producing BUSD, a stablecoin related to Binance.

The order, according to New York officials, is the result of unresolved difficulties with Paxos’ control of its partnership with the cryptocurrency exchange.

Read also: Google shares dropped from presentation

The company said that they would stop issuing the stablecoin on February 21.

Customers will be able to redeem their stablecoin through February 2024, and BUSD circulation will be backed 1:1 by US dollar reserves.

They may also choose to redeem their money in US dollars or convert it to the Pax Dollar, a different stablecoin that the corporation issues.

The business also announced that it will end its partnership with Binance.

The SEC

According to the Securities and Exchange Commission, BUSD should have been registered with the SEC in accordance with federal securities regulations, and the SEC intends to prosecute Paxos.

Paxos “categorically disagrees” with the notion, claiming that the BUSD is not a security under federal securities regulations, in a statement released on Monday.

The company claims that it is prepared to discuss the matter with the SEC and will “vigorously litigate” if required.

Investors have been alarmed by the BUSD directive.

2019 saw the alliance between Binance and Paxos for the stablecoin’s introduction.

The cryptocurrency trading platform had one of its worst days on Monday.

Data supplier Nansen reports that Binance had withdrawals totaling $873 million in net outflows.

Increasing enforcement

The BUSD crackdown is the latest development in numbers exhibiting their authority in the previous several months.

Its actions generate confusion and discontent inside the crypto ecosystem as many proponents have long sought regulatory clarification.

Marcus Sotiriou, a market analyst for GlobalBlock, paid close attention to what was happening.

“Regulation by enforcement is puzzling for crypto enthusiasts,” he pointed out.

“People are desperately trying to figure out how to offer a product legally whilst getting zero guidance.”

Whack-a-mole enforcement tactics have been used by the SEC in recent weeks, drawing criticism for unfairly concentrating the nascent business.

For instance, the SEC and the cryptocurrency exchange Kraken reached a $30 million settlement, which required the business to stop using staking.

Investors can earn a passive dividend on their cryptocurrency assets by doing away with the staking method.

The resolution brought up issues with concurrent exchanges using staking services.

Staking is seen as crucial to ensure the stable intersection of several coins by cryptocurrency enthusiasts.

Regulators cautioned US banks earlier in January about a number of hazards the cryptocurrency market carries, including:

  • Fraud
  • Shoddy risk management
  • Volatility

“It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system,” said the regulators.

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