In a significant development following the collapse of FTX, the Commodity Futures Trading Commission (CFTC) has imposed a $37 million disgorgement order on Nishad Singh, the former Director of Engineering at the now-defunct cryptocurrency exchange. As emphasized in the official statement, this decision, finalized on April 1, 2026, marks a crucial step in the ongoing efforts to address the fallout from the misappropriation of customer funds.
CFTC's Enforcement Action Against Singh
The CFTC's order comes as part of a civil enforcement action related to the misappropriation of over $8 billion in customer funds, which played a pivotal role in FTX's downfall in November 2022. Singh, who had previously pleaded guilty to federal charges, has been cooperating with the Department of Justice throughout the investigation, a factor that influenced the CFTC's decision to limit penalties to the disgorgement amount alone.
Impact of Singh's Cooperation
Singh's cooperation is reflected in the financial terms of the order, which aims to recover some of the lost funds for affected customers. The CFTC's action underscores the agency's commitment to holding individuals accountable in the wake of significant financial misconduct within the cryptocurrency sector.
Following the recent CFTC enforcement action against Nishad Singh, FTX has provided an important update for its preferred equity holders, establishing a record date for payments. For more details, see more.
