FTX's Former Director Nishad Singh Cross-Examined in Sam Bankman-Fried's Fraud Trial
Summary:
This article discusses the ongoing cross-examination of Nishad Singh, the former engineering director of FTX, in Sam "SBF" Sam Bankman-Fried's fraud trial. Singh confessed to having limited recollection of events and being oblivious to a software bug that inflated Alameda's liabilities, in his testimonial on Oct 16. SBF faces seven fraud-related charges connected to FTX and Alameda, as well as five additional charges in a second trial set for March 2024. The article also highlights the harrowing financial circumstance FTX faced in November 2022 and the expected $9B claim payout to their customers by mid-2024.
In the ongoing cross-examination of Nishad Singh, ex-engineering director at FTX, attorneys for the former CEO of FTX, Sam "SBF" Sam Bankman-Fried, probed him about circumstances that led to the use of FTX funds by Alameda Research. As per the courtroom updates from Oct 17, under the scrutiny of SBF's defense lawyer Mark Cohen, Singh acknowledged being unable to recollect much of what transpired from June to July 2022. Singh, the erstwhile FTX director, reportedly confessed to the ignorance of a software glitch that inflated Alameda's liabilities until he eavesdropped on a chat between the former FTX chief tech officer, Gary Wang, and the once FTX programmer, Adam Yedidia. "There was a gaping hole to the tune of $8 billion," Singh suggested related to the glitch's aftermath, “The unaccounted balance discrepancies appearing over the timeline in Alameda, as revealed by a graph screenshot shared by Caroline, were clarified by this bug."
October 5, 2023 saw the tenth day of SBF's criminal proceeding's cross-examination of Singh in New York. Bankman-Fried is facing seven charges linked to fraudulent activities at FTX and Alameda. Singh, during his testimonial on Oct 16, confessed to harboring suicidal thoughts because of the financial crisis faced by FTX in November 2022, and showed concerns over the dubious use of FTX customer funds for investment by Alameda. Reports suggest that the claim payout for the deficit of $9B at FTX could possibly reach its customers by the middle of 2024. The prosecutors are speculated to summon more witnesses to give evidence regarding the supposed actions of SBF and incidents resulting in FTX's downfall, until Oct 26 or 27. After this, SBF's defense will present its case theory. Witnesses who have testified so far include ex-Alameda CEO Caroline Ellison, along with Yedidia and Wang, and several ex-FTX customers. The first criminal trial of Bankman-Fried is expected to conclude in November. He is set to face an additional five charges in a second trial slated to begin in March 2024, to which he has entered a not guilty plea.
Published At
10/17/2023 5:04:50 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.