Nishad Singh Testifies about FTX’s Lavish Spending and Political Donations
In his testimony at Sam Bankman-Fried’s fraud trial, Nishad Singh, the former director of engineering at FTX, provided more details about the exchange’s extravagant spending. Singh admitted to money laundering and campaign finance violations related to FTX’s donations to political candidates.
Excessive and Flashy Spending
Singh revealed that he initially met Bankman-Fried through his younger brother and started working at Alameda Research in 2017. However, Singh’s opinion of Sam soured over time due to his excessive spending habits. He believed that the company’s partnerships with celebrities and other marketing activities were excessive and did not align with their original goals. Singh expressed embarrassment and disappointment regarding these deals, which included multi-million dollar purchases and sponsorship agreements.
Influential Figures
During the trial, prosecutors presented a photo of Bankman-Fried at a post-Super Bowl party alongside celebrities like Katy Perry, Orlando Bloom, and Michael Kives. Singh mentioned that Bankman-Fried proposed giving millions in bonuses and making a billion-dollar investment in Kives’ VC firm using FTX’s funds. Singh objected to this proposal and insisted that it should be done with Bankman-Fried’s personal money rather than company funds.
Singh claimed limited involvement in FTX’s political donations but admitted that his Prime Trust account was used to send donations to candidates and Super PACs. He explained that there was a Signal chat group called “Donations Processing,” where Gabriel (Bankman-Fried’s brother) managed the donations. Singh’s role was simply to click the button for processing the transactions.
Hot Take: FTX’s Extravagant Expenditures Highlight Ethical Concerns
Nishad Singh’s testimony sheds light on the excessive and flashy spending culture at FTX, which he found contradictory to the company’s mission. The significant investments in celebrity partnerships and high-profile sponsorship deals raise ethical concerns about responsible financial management. Additionally, the involvement of FTX’s funds in political donations further complicates the situation.
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