Former FTX Engineer Reveals Potential Deal with Telegram
In the ongoing court case against former FTX CEO Sam Bankman-Fried, Nishad Singh, a former top engineer at the defunct crypto exchange network, testified on October 16. Singh revealed that Bankman-Fried had planned a potential deal with Telegram for TON tokens.
FTX’s Proposal to Telegram
Singh admitted his involvement in defrauding customers and participating in money laundering. He also mentioned Bankman-Fried, Gary Wang, Caroline Ellison, and Ryan Salame as co-conspirators. According to Singh’s testimony, in September 2022, while Bankman-Fried was in the Middle East raising funds, he proposed a deal with Telegram to acquire TON tokens. The deal would have cost FTX $120 million.
The plan was discussed in a Signal group called “hashtag meetings,” which included key opinion leaders (KOL) and leadership members. Bankman-Fried later presented the plan to the larger FTX group, suggesting that FTX develop a payment-processing service for Telegram. In return, FTX would receive $100 million worth of TON tokens.
Despite concerns raised by Singh and other team members about the risks associated with illiquid tokens, Bankman-Fried decided to proceed with the plan. He reassured the team that they wouldn’t be held responsible if anything went wrong.
Telegram’s Collaboration and FTX’s Questionable Financial Decisions
In October 2022, the Ton Foundation announced a collaboration with Telegram to create the TON Space wallet during the Singapore 2049 event. However, reports do not mention FTX’s involvement at this point.
Aside from the proposed Telegram deal, FTX made several other questionable financial decisions. Singh mentioned FTX’s $1 billion investment in Genesis Digital Assets, a Kazakhstan-based mining company, and a $500 million investment in Anthropic, an AI safety company. FTX also invested $200 million in K5 and engaged in high-profile dinners with individuals like Jeff Bezos and Hillary Clinton.
Singh also highlighted FTX’s acquisitions of properties, including the Penthouse, and political donations.
Hot Take: FTX’s Ambitious Plans and Controversial Actions
Former FTX engineer Nishad Singh’s testimony sheds light on the ambitious plans and controversial actions of the crypto exchange network. The revelation of a potential deal with Telegram for TON tokens raises questions about the extent of FTX’s involvement in the crypto sector.
The proposed deal, along with FTX’s other financial decisions, including investments in mining companies and AI ventures, indicate a willingness to take risks and expand its influence. However, these actions also raise concerns about the company’s financial practices and potential regulatory implications.
FTX’s involvement with high-profile individuals and political donations further adds to the complexity of its operations. As the court case continues, it remains to be seen how these revelations will impact FTX’s reputation and the broader crypto industry.
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