The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have recently filed parallel charges against FTX executive Nishad Singh. The charges allege that Singh had engaged in a fraudulent scheme to manipulate the market for certain digital assets.
Nishad Singh is a former executive at FTX, a cryptocurrency derivatives exchange. According to the SEC’s complaint, Singh allegedly engaged in a fraudulent scheme to manipulate the market for certain digital assets. Specifically, the SEC alleges that Singh used his position at FTX to manipulate the price of certain digital assets by placing orders on FTX’s platform that were designed to artificially inflate or deflate the prices of those assets.
The CFTC’s complaint alleges that Singh engaged in a similar scheme, but with respect to futures contracts traded on FTX’s platform. According to the CFTC, Singh allegedly placed orders on FTX’s platform that were designed to artificially inflate or deflate the prices of certain futures contracts.
Both the SEC and CFTC allege that Singh’s actions violated federal securities and commodities laws. The SEC has charged Singh with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, while the CFTC has charged him with violations of Section 6(c)(1) of the Commodity Exchange Act and CFTC Regulation 180.2.
The SEC and CFTC are seeking civil penalties, disgorgement of ill-gotten gains, and other relief against Singh. The SEC is also seeking an injunction against future violations of the federal securities laws.
The filing of these charges against Nishad Singh is a reminder that the SEC and CFTC are actively monitoring the cryptocurrency markets for potential violations of federal securities and commodities laws. Investors should be aware that trading digital assets carries significant risks, and should always be sure to conduct their own due diligence before investing in any digital asset.
Source: Plato Data Intelligence: PlatoAiStream
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