The ongoing trial of Sam Bankman-Fried, the founder of the defunct FTX exchange, took a dramatic turn in its third week as Nishad Singh, a former senior FTX executive, testified that he had knowledge of improper use of customers’ funds within the company.
Nishad Singh Joins Witness List
According to reports, Singh, who had served as the Head of Engineering at FTX, revealed that he became aware of a financial “hole” in the company’s finances in September 2022.
The “hole” in the company’s finances that Singh referred to amounted to approximately $8 billion. What makes this revelation even more startling is that Singh, despite his awareness of the discrepancies, approved transactions that he believed were funded by user deposits.
Singh testified that the stolen monies were used by Alameda Research, a subsidiary firm managed by Bankman-Fried, for a variety of objectives, including venture investments, political contributions, real estate acquisitions, and numerous other expenditures.
Furthermore, Singh’s testimony offered a glimpse into the dynamics between him and Sam Bankman-Fried. He confessed to always being intimidated by the FTX co-founder, acknowledging Bankman-Fried’s formidable intellect and character. Over time, however, Singh’s admiration and respect for his friend eroded, culminating in the shocking revelations made during the trial.
Singh’s position within the company is notable as well. He testified that he held the third-largest equity stake in FTX, received a base salary of $200,000, and collected substantial bonuses, totaling approximately $1 million each year through 2020.
Key Witnesses in Sam Bankman-Fried’s Trial
Nishad Singh’s testimony comes on the heels of others who have already confessed to their involvement in fraud and conspiracy within FTX and Alameda. Singh joins the ranks of Caroline Ellison and Gary Wang, both of whom have already admitted their guilt and are now cooperating with prosecutors.
What sets Singh apart from previous witnesses is his close personal connection to Bankman-Fried. Not only was he a high-ranking employee within FTX, but he was also a childhood friend of Bankman-Fried’s younger brother, Gabriel.
Singh’s connection to Bankman-Fried extends even further, as he lived with the billionaire in The Bahamas at one point. This intimate familiarity with the accused adds weight and credibility to Singh’s testimony.
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