FTX's Nishad Singh Admits to Deception and Collusion in Criminal Court Proceedings

FTX's Nishad Singh Admits to Deception and Collusion in Criminal Court Proceedings

The latest developments in the court cases involving FTX higher-ups and Nishad Singh, a former FTX executive who pleaded guilty, have shed new light on the collapse of the crypto exchange.

According to reports, Nishad Singh testified against Sam Bankman-Fried, his former friend and FTX's founder. Singh's testimony has been included in expanded civil lawsuits filed by FTX users. In these lawsuits, Singh alleged that he informed the law firm Fenwick & West about improper loans, false statements, and misuse of customer funds. He also claimed that Fenwick advised on ways to hide fraudulent acts.

These allegations support FTX users' attempts to amend their class-action lawsuit, which claims that Fenwick & West played a central role in enabling the FTX fraud through designing conflicted company structures and facilitating unlawful transactions. The amended complaint introduces new securities law claims involving FTX Token sales and yield-bearing accounts, alleging Fenwick's active role in promoting unregistered securities.

Fenwick & West, however, denies these allegations, arguing that their conduct was within client representation scope and moving to dismiss the claims.

Separately, Changpeng Zhao, the former CEO of Binance, has filed a motion to dismiss a $1.7 billion lawsuit from FTX's bankruptcy estate. Zhao contests the jurisdiction and claims the accusations of destabilizing FTX are baseless, asserting that Binance ended business ties with FTX before its collapse.

Nishad Singh's guilty plea and cooperation contribute significantly to the litigation against Bankman-Fried and associated parties, reinforcing allegations of fraud and mismanagement. These developments coincide with continued federal prosecutions of major crypto figures, building on the precedent set by Bankman-Fried's conviction.

In summary, Nishad Singh's guilty plea and testimony have implicated Fenwick & West in facilitating fraud and advising on concealment of wrongdoing. FTX users have filed amended lawsuits expanding claims against Fenwick & West for enabling fraud, including securities law violations related to FTX token sales. Fenwick denies these allegations and seeks to dismiss the case. Changpeng Zhao, the former CEO of Binance, has challenged a major lawsuit brought by FTX's bankruptcy estate, denying causing FTX's collapse. These court actions are part of broader federal efforts prosecuting crypto executives linked to fraud, with increasing scrutiny on legal responsibilities in the crypto industry.

For the latest news on this developing story, visit gizmodo.com/latest. You can also find more news coverage on tech, science, or io9 front pages.

[1] Reuters. (2025, August 1). FTX users sue law firm Fenwick & West, alleging role in enabling fraud. Retrieved from https://www.reuters.com/business/finance/ftx-users-sue-law-firm-fenwick-west-alleging-role-enabling-fraud-2025-08-01/

[2] Bloomberg. (2025, August 2). FTX Users Amend Suit Against Fenwick & West, Adding Securities Law Claims. Retrieved from https://www.bloomberg.com/news/articles/2025-08-02/ftx-users-amend-suit-against-fenwick--west-adding-securities-law-claims

[3] CoinDesk. (2025, August 3). Binance CEO Changpeng Zhao Files Motion to Dismiss $1.7B FTX Lawsuit. Retrieved from https://www.coindesk.com/business/2025/08/03/binance-ceo-changpeng-zhao-files-motion-to-dismiss-1-7b-ftx-lawsuit/

[4] The New York Times. (2025, August 4). Prosecutions of Crypto Executives Intensify, with Increasing Scrutiny on Legal Responsibilities. Retrieved from https://www.nytimes.com/2025/08/04/business/crypto-executives-prosecutions-intensify.html

[5] The Wall Street Journal. (2025, August 5). Binance Denies Causing FTX's Collapse, Files Motion to Dismiss Lawsuit. Retrieved from https://www.wsj.com/articles/binance-denies-causing-ftxs-collapse-files-motion-to-dismiss-lawsuit-11659577419

1. The tech industry, specifically the cryptocurrency sector, faces increased scrutiny as federal prosecutions against major crypto figures continue, following the collapse of FTX.
2. A former FTX executive, Nishad Singh, has testified against Sam Bankman-Fried, exposing improper loans, false statements, and misuse of customer funds within the tech company; these allegations have been included in expanded civil lawsuits filed by FTX users.
3. In addition to Nishad Singh's allegations against FTX's law firm Fenwick & West, FTX users have amended their class-action lawsuit, introducing new securities law claims related to FTX Token sales.
4. Changpeng Zhao, the former CEO of Binance, has challenged a major lawsuit brought by FTX's bankruptcy estate, asserting jurisdiction and contesting baseless accusations linking Binance to causing FTX's collapse.
5. News sources such as Gizmodo, Reuters, Bloomberg, CoinDesk, The New York Times, and The Wall Street Journal are providing updates on the FTX case, offering insights on the future of the crypto industry, business, finance, politics, general news, and crime-and-justice implications.

Read also: