CFTC orders Nishad Singh to return $3.7M, sets five-year trading ban

CFTC orders ex-FTX engineering chief Nishad Singh to disgorge $3.7M. The April 1, 2026 supplemental consent order closes the agency’s civil case tied to FTX’s 2022 collapse.

No extra civil fine. Singh earlier avoided prison after cooperating with the DOJ, per NBC News. NBC News on sentencing. The $3.7M matches traceable proceeds and is coordinated with criminal forfeiture, per Coinspeaker. Coinspeaker report.

Key details for investors:
- Order date and amount: CFTC finalized a supplemental consent order on April 1, 2026 requiring $3.7M disgorgement; no additional civil penalty beyond that. Coinspeaker report. Coin Bureau tweet.
- Case scope: Action stems from $8B+ in customer fund misappropriation preceding FTX’s November 2022 collapse. Coinspeaker report.
- Singh’s role: In 2019 he added an “allow negative” flag letting Alameda carry negative balances; in August 2020 he exempted Alameda from auto-liquidation and later raised its borrowing cap to $65B. These changes were undisclosed to customers. Coinspeaker report.
- Disgorgement basis: Tied to Singh’s October 2022 home purchase funded by withdrawals from an FTX account containing misappropriated customer funds. Coinspeaker report.
- Prior and current sanctions: An April 2023 consent order permanently enjoined Singh from CEA violations. The April 2026 order sets the disgorgement, a five-year trading prohibition, and an eight-year ban from CFTC-registered entities. Coinspeaker report.
- Cooperation credit: CFTC Enforcement Director David Miller cited Singh’s cooperation with investigators in explaining the financial terms. Coinspeaker report.