Top FTX Exec Nishad Singh Receives No Prison Time Due to Cooperation

Nishad Singh, a Top FTX Executive, Is Given No Prison Time After Cooperation

Nishad Singh, who was a top adviser to the disgraced cryptocurrency mogul Sam Bankman-Fried, avoided prison time for his role in the collapse of the FTX crypto exchange, after a federal judge on Wednesday lauded his cooperation with U.S. prosecutors.

Mr. Singh, 29, was sentenced to three years of supervised release at a hearing in Federal District Court in Manhattan, an unexpected reprieve after Mr. Bankman-Fried and two other FTX executives received long sentences. Judge Lewis A. Kaplan, who has presided over the cases, said that Mr. Singh provided crucial assistance to the government and that he had played a “much more limited” role in the scheme than his colleagues had.

Founder of Cryptocurrency Financial Services Firm “MyTrade” Pleads Guilty to Market Manipulation and Fraud Conspiracy

The founder and primary operator of “MyTrade,” a financial services firm known in the cryptocurrency industry as a “market maker,” pleaded guilty today in federal court in Boston for his role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies.

Liu Zhou, 39, of China and Canada, pleaded guilty today to conspiracy to commit market manipulation and wire fraud. U.S. District Court Judge Angel Kelley scheduled sentencing for Feb. 27, 2025.

MyTrade provided financial services to cryptocurrency clients through its “MyTrade MM” website and online application. Those services included the wash trading of client cryptocurrencies across multiple cryptocurrency exchanges. Wash trading occurs when a single trader, or a number of traders working in coordination, buy and sell the same asset repeatedly in order to mislead the market by artificially inflating the trading volume or price of the asset via trades that have no lawful commercial purpose. Wash trading is a form of fraud intended to stimulate interest in an asset and is specifically prohibited by the securities laws. MyTrade MM’s clients had access to a dashboard available through MyTrade MM’s website that allowed clients to specify the desired amount of daily wash trades—a service described as “Volume Support”—on identified cryptocurrency exchanges. MyTrade MM used computer programs known as “bots” to generate the fraudulent wash trades for clients.

Legal attacks are slowing SEC rulemaking in crucial election year

Adverse court decisions over the past two years have blocked the SEC from overseeing the $27 trillion private funds industry; criticized its economic justification for new share buyback disclosures; and curtailed its powers to punish bad actors.

The SEC has also been affected by Supreme Court decisions curbing federal agencies’ powers to interpret ambiguous laws or issue rules of major importance.

As a result, SEC officials are rethinking rulemakings and some enforcement actions to help ensure they can survive legal attacks, according to four people familiar with the matter who asked for anonymity to discuss internal SEC issues.

SEC Chair Gary Gensler has said the SEC pivots when the courts find against the agency, but the extent to which it is having to adjust is becoming clearer.

Private Equity’s Ties to Companies’ Auditors Have Never Been Closer. That Worries Some Regulators

By the end of 2025, more than half of the largest 30 U.S. accounting firms will have either sold an ownership stake or part of their business to private-equity investors, up from zero in 2020, said Allan Koltin, chief executive at advisory firm Koltin Consulting Group.

An auditor’s objectivity, both real and perceived, is critical to the business of accounting firms, which typically also have consulting and tax operations. Whether that independence can be preserved or not under new buyers is coming into question, especially as private-equity managers take a hands-on approach with their new acquisitions.

Inspired by Trump, Florida Official Eyes State Bitcoin Stockpile for Retirees

Florida’s chief financial officer proposed that the funds that support retired state workers should dabble in crypto, inspired by Republican presidential candidate Donald Trump’s support for the U.S. government stockpiling bitcoin (BTC).

“I believe this forethought and innovative thinking from a successful businessman like President Trump must not be taken for granted,” state CFO Jimmy Patronis said in a letter to the executive director of Florida’s State Board of Administration, advocating for his state to join others that have already made such investments. “Bitcoin is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes.”