Indian-origin Nishad also investigated in FTX case
Indian-origin Nishad was also investigated in the FTX case: Nishad Singh is close to co-founder Sam Bankman-Fried and was associated with Alameda Research in 2017
Indian-origin Nishad Singh is under investigation after the sinking of one of the world's largest cryptocurrency exchanges FTX. According to media reports, Nishad is one of the nine people believed to be close to FTX co-founder Sam Bankman-Fried. In December 2017, Nishad Singh joined Alameda Research, a subsidiary of FTX, which is currently at the center of controversy. Prior to this, he worked as a software engineer at Facebook for about five months.
At Alameda Research, he was the Director of Engineering for 17 months. He then moved to the cryptocurrency exchange FTX in April 2019 and has held the same top engineering post ever since. Nishad Singh was in the inner circle of FTX co-founder Sam Bankman-Fried. According to the crypto news website CoinDesk, Chief Technology Officer Gary Wang controlled Nishad and Sam Code.
Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Alameda, news agency Reuters reported on Friday. In a video meeting on Wednesday, Carolyn Ellison, CEO of Alameda Research, told employees that she, Sam Bankman-Fried, and two other executives, Nishad Singh and Gary Wang, were about to transfer customer funds, wrote the Wall Street Journal in a report. I knew.
According to Nishad Singh's LinkedIn profile, he attended Crystal Springs Uplands School in California and graduated from the University of California in 2017 in electrical engineering and computer science.
FTX Trading Limited has gone bankrupt due to a financial crunch which has gone into a liquidity crunch. FTX was the second largest affiliated crypto trading company in the world. To understand this whole matter, one has to first understand what FTX and Binance are. FTX and Binance are cryptocurrency exchanges. That is, they allow customers to trade in digital currency.
According to industry data tracker Coin Market Cap, these two exchanges process the majority of all crypto trades in the world. It was run by Sam Bankman-Fried. Its headquarters are in the Bahamas. The largest exchange is Binance, which is run by billionaire Changpeng Zhao. It has no official headquarters and operates largely outside the US. One of the early investors in FTX was Binance.
FTX contains a native cryptocurrency token called FTT, which traders use for operations such as payment of transaction fees. Last year, Zhao sold his stake in FTX back to Bankman-Fried.
For this, Fried partially paid with FTT tokens. On November 2, crypto publication CoinDesk published reports on a leaked balance sheet that revealed financial malpractices. This document shows that Alameda Research, a hedge fund operated by Bankman-Fried, held an unusually large amount of FTT tokens. The leaked balance sheet showed that Alameda Research, Bankman-Fried's crypto trading firm, relied heavily on FTX's native token, FTT.
FTX and Alameda are separate businesses, but the report claimed that they had close financial ties. After this report surfaced, turmoil started in FTX. Binance announced on November 6 that it would be selling its FTT tokens “due to recent revelations”. This caused the price of FTT to drop and traders rushed to exit FTX fearing that the crypto company would sink.
FTX received an estimated $6 billion in withdrawal requests in three days. FTX got into a liquidity crunch due to the sudden withdrawal request i.e. it was not in a position to process the withdrawal request.
Amid FTX's liquidity crunch, Binance on Tuesday said it would buy FTX. However, Zhao also clarified that Binance could exit the deal at any time. Following its agreement, Banksman-Fried said the deal would protect customers and enable FTX to complete the trader's withdrawal process. In the meantime, he also tried to dispel rumours of a conflict between FTX and Binance.
On Wednesday, Binance announced that it would no longer be buying FTX. He told Corporate Due Diligence the reason for breaking the deal. Binance also cited regulatory scrutiny and misreporting of funds. Binance also said that whenever a major player in an industry fails, retail consumers suffer. On Friday, FTX filed bankruptcy with the resignation of Bankman-Fried.