FTX's former chief engineer hands over his $3.7 million vacation home to the US government as it's believed to be linked to his crimes, report says

• FTX's Nishad Singh forfeited a $3.7 million vacation home to the US government, Bloomberg reported.
• The mansion, bought weeks before FTX's collapse, is believed to be tied to Singh's crimes.

FTX's former chief engineer Nishad Singh relinquished a $3.7 million vacation home in the Pacific Northwest to the US government because prosecutors believe it's tied to his crimes, Bloomberg reported on Thursday.

The 27-year-old bought the six-bedroom house, overlooking the San Juan Islands that lie between Seattle and Vancouver, on October 25 – just weeks before the crypto exchange filed for bankruptcy, according to Bloomberg. He reportedly paid for the property using money from his personal FTX account.

Sources told Bloomberg he'd agreed to give up the property as part of his guilty plea in the federal fraud case about the exchange's collapse, in which founder Sam Bankman-Fried and other executives were accused of misappropriating FTX's customer funds. These sources requested anonymity because the forfeiture was withdrawn from court records.

Singh's lawyers Andrew D. Goldstein and Russell Capone did not immediately respond to Insider's request for comment about the forfeiture.

The property stands on a wooded hill with fruit trees, and features a lap pool and a hot tub, per Bloomberg.

Singh pleaded guilty to six criminal counts including wire fraud and conspiracy charges in February.

FTX and 130 affiliated companies including trading firm Alameda Research filed for Chapter 11 bankruptcy in November, after it was exposed that Bankman-Fried had funneled billions of dollars of FTX's customer funds to prop up Alameda.

Nishad pleaded guilty alongside other former FTX executives including co-founder Gary Wang and former Alameda CEO Caroline Ellison, who are both cooperating with federal prosecutors.

The Securities and Exchange Commission separately accused Singh of creating a code that allowed Bankman-Fried to easily divert the funds to Alameda. They also accused him of taking $6 million from FTX for personal expenditure and making donations to charity.

Bankman-Fried, who was arrested in December, has pleaded not guilty to eight criminal counts. He was then released on a $250 million bail agreement confining him to his parents' home.