CFTC v. Singh - FTX Engineering Fraud Disgorgement and Trading Ban

CFTC Press Releases

Filed April 1st, 2026

Detected April 2nd, 2026

Summary

The CFTC announced a supplemental consent order against Nishad Singh, former FTX head of engineering, imposing $3.7 million in disgorgement, a five-year trading ban, and an eight-year registration ban. The order resolves the CFTC's enforcement action based in part on Singh's cooperation, including his guilty plea in the parallel criminal case United States v. Singh to six counts including conspiracy to commit commodities fraud.

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What changed

The U.S. District Court for the Southern District of New York entered a supplemental consent order against Nishad Singh imposing disgorgement of $3.7 million, a five-year trading ban, and an eight-year registration ban from the date of the initial consent order (April 2023). The initial consent order found Singh liable for fraud by misappropriation and aiding and abetting such fraud under the Commodity Exchange Act. The CFTC noted it is not seeking restitution or civil monetary penalties at this time due to Singh's substantial cooperation in the Commission investigation and related criminal proceedings.

This supplemental order resolves the CFTC's enforcement action against Singh. Market participants should note that cooperation with the CFTC can result in reduced penalties, as demonstrated by the absence of additional civil monetary penalties in this case. The Commission's enforcement director emphasized this resolution reflects the CFTC's commitment to rewarding material assistance in investigations. Entities should ensure robust compliance with antifraud provisions of the CEA, particularly regarding customer fund handling.

What to do next

Review internal controls over customer fund handling and segregation
Ensure antifraud compliance programs address the specific violations cited (misappropriation)
Document cooperation efforts if involved in CFTC investigations as potential mitigating factor

Penalties

$3.7 million disgorgement, five-year trading ban, eight-year registration ban

Source document (simplified)

Release Number 9204-26

CFTC Resolves Action Against Former FTX Head of Engineering

April 01, 2026

WASHINGTON — The Commodity Futures Trading Commission today announced the U.S. District Court for the Southern District of New York entered a supplemental consent order against Nishad Singh, the former head of engineering at FTX.

The order imposes disgorgement of $3.7 million, requires Singh to continue cooperating with the Commission, and imposes a five-year trading ban and an eight-year registration ban — both from the date of entry of the initial consent order.

The initial consent order and supplemental consent order resolve the CFTC’s enforcement action against Singh. [See CFTC Press Release No. 8669-23 ]

The court entered an initial consent order in April 2023 against Singh, finding him liable on both counts of the CFTC’s complaint, including fraud by misappropriation and aiding and abetting such fraud. It also permanently enjoined Singh from violating the antifraud provisions of the Commodity Exchange Act and Commission regulations as charged, and from willfully aiding and abetting such violations.

“The injunctions and monetary relief imposed here demonstrate the significant benefits that may be achieved through cooperating with the CFTC,” said Director of Enforcement David Miller. “The defendant engaged in, and aided, significant violations of the Act and CFTC regulations as the former FTX head of engineering, and the consent orders reflect the severity of these violations. But this resolution also reflects the Commission’s commitment to rewarding and incentivizing material assistance in Division investigations.”

The supplemental consent order acknowledges that the Commission is not seeking restitution and/or a civil monetary penalty at this time, based in part upon Singh’s cooperation in the Commission’s investigation and related proceedings, including the parallel criminal action, United States v. Singh, Crim. No. 22-cr-673 (S.D.N.Y. 2023), in which Singh pled guilty to six counts, including conspiracy to commit commodities fraud.

-CFTC-