Former Alameda and FTX Developer Testifies Against Sam Bankman-Fried
In the ongoing trial of United States v Sam Bankman-Fried, Nishad Singh, former chief developer of Alameda and FTX, testified against the defendant. Singh claimed to have felt intimidated by Bankman-Fried and disagreed with his extravagant spending decisions using customer crypto. The defense attorney cross-examined Singh, focusing on the billions of dollars invested in Michael Kives’ firm and marketing deals. Singh revealed that Bankman-Fried used stolen customer assets for Alameda Research loans and purchased a $30 million condo, highlighting the founder’s complete control over his crypto entities. The trial is expected to hear from two or three more witnesses before Bankman-Fried’s lawyers present their defense.
Bankman-Fried’s Family Involved in Political Donations
Day 10 of the trial delved into executive benefits at Bankman-Fried’s companies and a code bug that allowed Alameda Research to borrow billions from FTX users. Singh disclosed receiving cash bonuses, loans, and equity from FTX totaling hundreds of millions of dollars. He also mentioned conversations with Bankman-Fried, Caroline Ellison, and Gary Wang about an $8 billion deficit in Bankman-Fried’s trading firm. Multiple witnesses supported these claims. Additionally, Singh testified that Bankman-Fried’s brother and mother were involved in political donations. Singh himself pleaded guilty to Federal Elections Commission violations.
FBI Special Agent Provides Cell Phone Analysis
The next witness, FBI special agent Richard Busick, analyzed Bankman-Fried’s smartphone for the prosecution. Evidence from the device included an invitation to a Forbes photo shoot, tweets featuring the defendant with politicians like Eric Adams and a scheduled meeting with Bill Clinton before FTX’s collapse. Judge Kaplan indicated that the trial could conclude in the first half of next month.
Hot Take: Bankman-Fried’s Trial Reveals Alleged Misuse of Customer Assets and Political Involvement
The ongoing trial of Sam Bankman-Fried, founder of FTX, has unveiled shocking allegations against him. Former employees have testified about his extravagant spending habits using customer crypto and his control over Alameda Research and FTX. Additionally, evidence suggests that Bankman-Fried’s family was involved in political donations. The trial also included analysis of Bankman-Fried’s smartphone, revealing connections to influential figures. As the trial progresses, it remains to be seen how the defense will respond to these claims. The outcome of this trial could have significant implications for the reputation and future of Bankman-Fried and his crypto enterprises.
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