FTX Engineer Testifies Against Sam Bankman-Fried in Trial
In the ongoing trial of former FTX CEO Sam Bankman-Fried (SBF), FTX’s Director of Engineering Nishad Singh provided detailed testimony about SBF’s alleged wrongdoings. Singh, like other close associates who testified before him, admitted guilt related to fraud and campaign finance violations.
Sam Bankman-Fried’s Control Over FTX
Singh confirmed that while both Sam Bankman-Fried and Gary Wang were in charge of the exchange, it was primarily SBF who handled endorsement deals totaling $1.3 billion. He also asserted that even when Sam Trabucco and Caroline Ellison took over as CEO, SBF was ultimately in charge of Alameda. Singh explained that SBF unilaterally spent the trading firm’s money and had the power to fire Ellison.
The Creation of the Bug and Alameda’s Negative Balance
Singh admitted his role in creating the bug that concealed the correct accounting for the exchange’s account. He stated that Alameda’s negative balance grew to $8 billion, which he overheard from a conversation between Wang and Adam Yedidia. While Singh acknowledged his involvement in creating a feature allowing negative balances, he claimed he didn’t know it would be used for that purpose.
Facts About FTX’s Campaign Finance Violations
Singh confirmed that he acted as a straw donor for campaign donations orchestrated by SBF, Gabriel Bankman-Fried (SBF’s brother), and former FTX executive Ryan Salame. The funds for these donations came from Alameda, which consisted of customers’ funds. Singh’s involvement was minimal, mainly signing off on checks using his bank account.
Upcoming Cross-Examination and Trial Progress
Singh’s cross-examination will take place on October 17. The prosecution expects to conclude most of their witness testimonies this week, with only one or two witnesses expected to testify next week.
Hot Take: SBF’s Inner Circle Testimonies Reveal Damning Allegations
The testimonies of FTX associates, including Nishad Singh, provide explicit details about Sam Bankman-Fried’s alleged wrongdoings. These testimonies confirm SBF’s control over FTX, his involvement in fraudulent activities, and the misuse of funds for campaign finance violations. As the trial progresses, it becomes increasingly clear that SBF’s actions had a significant impact on the operations and financial integrity of FTX. The prosecution’s case against SBF continues to strengthen with each witness testimony, painting a damning picture of the former CEO’s conduct.
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