In the world of cryptocurrency and blockchain technology, stories often center
around innovation, success, and the promise of a decentralized future. However,
sometimes a story emerges that takes a dark turn, serving as a stark reminder that
the crypto world, like any other, is not without its share of troubles.
Nishad Singh was a prominent part of FTX as an engineer and their success as an
exchange before their crash in November 2022 which missed a total of $3.4 billion
user funds. Nishad Singh was facing up to 75 years in prison for pleading guilty to
fraud charges. He is a part of the criminal trial of Sam “SBF” Bankman-Fried
revealing that FTX had over a billion dollars in endorsement deals with
mega-influencers. Some to include are Stephen Curry, Tom Brady, and Kevin O’leary.
In Nishad Singh’s plea, he spoke to the judge about the borrowing of $13 billion
dollars to Alameda Research straight from the FTX exchange.
“I felt betrayed, something I’d put in blood, sweat and tears for five years turning out
so horrible.” Singh said. Nishad had become increasingly worried days leading up to
the crash, as FTX would act like nothing was wrong but behind the scenes everything
came crumbling down; mainly due to liquidity issues.
Similar downfalls and the sheer unpredictability of cryptocurrency may be the reason
why it hasn’t yet been adopted mainstream. The repercussions of the crash of FTX
destroyed lives, people's futures, and caused many to lose a large portion of their net
worth. Nishad Singh’s case extends far beyond the individual involved. It serves as a
sobering reminder of the importance of integrity within the cryptocurrency industry.
As the crypto space matures and gains broader acceptance, maintaining trust and
adhering to legal and ethical standards is paramount.
To conclude this tale of Nishad Singh, Sam Bankman-Fried, and the loss of billions in
users' funds is a lesson that resonates beyond the crypto industry. It serves as a
reminder of the importance of making responsible choices, upholding ethical
standards, and being mindful of the potential consequences of one's actions.
In many ways, this case shows the industry's need for enhanced scrutiny and
oversight. While cryptocurrencies provide amazing potential and possibilities, they
also draw people with less than noble intentions. To ensure that bad actors are held
accountable, the crypto community must work together to