Former Developer Testifies to $1.3 Billion of Customer Funds Invested in Sam Bankman-Fried’s Social Capital
Nishad Singh, a former chief developer at Alameda and FTX, has testified in the trial of Sam Bankman-Fried, also known as SBF. Singh claimed that $1.3 billion of customer funds were used to build Bankman-Fried’s social capital and public image. The trial has seen testimonies from other key individuals, including Caroline Ellison and Gary Wang, who were part of SBF’s inner circle.
FTX User Wired $500k to SBF’s Exchange via Alameda Bank Account
Tareq Morad, an FTX retail user, testified during the trial that he funded his account through wire deposits to Alameda accounts. Morad stated that he was influenced by Bankman-Fried’s mainstream media mentions and social media posts, which gave him a false sense of legitimacy.
Alameda Loans Financed Political Donations, According to Singh
Nishad Singh, under oath as part of his cooperation agreement with the government, revealed that Alameda Research and FTX financed political donations. He claimed that Michael Kives’ consultancy firm received $1 billion in funding from Bankman-Fried’s direction. Singh also discussed Bankman-Fried’s excessive spending on endorsements, real estate purchases, and luxury apartments.
Hot Take: Allegations of Fraud and Misuse of Funds Emerge in SBF’s Trial
The ongoing trial of Sam Bankman-Fried has shed light on alleged fraud and misuse of funds within FTX and Alameda. Former employees have testified that Bankman-Fried spent millions to create a false public image and bribed Chinese officials. Additionally, witnesses have accused him of misusing customer funds and misleading investors. The trial has also revealed details of Alameda’s involvement in financing political donations. These allegations raise serious concerns about the integrity and transparency of the cryptocurrency industry. As the trial continues, it remains to be seen how this will impact Bankman-Fried’s reputation and the future of FTX.
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