WASHINGTON, April 1 — The Commodity Futures Trading Commission said a U.S. federal court has entered a supplemental consent order against Nishad Singh, and, together with a prior order, resolves the agency’s enforcement action against the former head of engineering at FTX, according to a CFTC press release.
The U.S. District Court for the Southern District of New York ordered Singh to disgorge $3.7 million, imposed a five-year trading ban and an eight-year registration ban, and required him to continue cooperating with the Commission, the agency said.
Enforcement outcome and supplemental order terms
The CFTC said the supplemental consent order, together with an initial consent order entered in April 2023, resolves its action against Singh.
The agency said the court previously found Singh liable on counts including fraud by misappropriation and aiding and abetting such fraud, and permanently enjoined him from violating antifraud provisions of the Commodity Exchange Act and related regulations.
Disgorgement, trading and registration bans
According to the CFTC, the court ordered Singh to disgorge $3.7 million and imposed a five-year ban on trading and an eight-year ban on registration, both measured from the date of entry of the initial consent order.
The agency said the supplemental order also requires Singh to continue cooperating in its investigation and related proceedings.
Cooperation and penalty considerations
The CFTC said it is not seeking restitution or a civil monetary penalty at this time, citing Singh’s cooperation in its investigation and related proceedings, including a parallel criminal case in which he pleaded guilty to six counts, including conspiracy to commit commodities fraud.
Background of initial consent order
The court entered an initial consent order against Singh in April 2023 following the CFTC’s complaint.
The initial order imposed a permanent injunction against violations of the Commodity Exchange Act and related regulations and addressed conduct tied to his role at FTX, according to the agency.
