Former FTX Director Accuses Ex-CEO of Unilateral Financial Decisions in Criminal Trial
Summary:
Former FTX engineering director Nishad Singh testified during ex-CEO Sam "SBF" Bankman-Fried's New York criminal trial, alleging him of making unilateral decisions on Alameda Research purchases. Singh referenced investments in AI startup Anthropic and K5 Global, and also affirmed SBF's threats to fire employees, including Caroline Ellison. He claimed that the knowledge of these expenditures was given to him posthumously. Further, Singh stated SBF initiated his distrust. Prior confessors, including Ellison, Gary Wang, and Ryan Salame also pleaded guilty to fraud charges related to using FTX resources for investments without user consent.
As per assertions in a New York court, ex-CEO of FTX, Sam "SBF" Bankman-Fried, had a tendency to unilaterally authorize purchases through Alameda Research. This information emerged from former FTX engineering director Nishad Singh during SBF’s criminal trial on October 16. Singh’s statement established that despite Alameda being managed by Caroline Ellison and Sam Trabucco, the actual control lay in the hands of Bankman-Fried. Singh also claimed that “SBF independently used Alameda's finances,” regardless of his apparent distinct position at FTX, and even threatened to fire Ellison.
Reports say Singh noted, “The spending [at Alameda] was something I'd find out about posthumously.” He would express his concern about the opulence and ostentation, which seemed contrary to the company's objectives. “[SBF would] retort saying that I was lacking comprehension, stating that he was networking. Where I saw an overpayment by $20 million, he accused me of inciting skepticism.” Singh further remarked, “Sam is a compelling personality. My trust in him weakened over time.”
Singh referenced investments in AI startup Anthropic and K5 Global, an investment firm associated with high-profile individuals such as former US Secretary of State Hillary Clinton and several Hollywood stars. Apparently, SBF directed Singh and former CTO Gary Wang to proceed with a $1-billion investment in a venture capital firm run by K5 Global co-owners Michael Kives and Bryan Baum.
On October 3, Bankman-Fried's criminal trial began in New York, with Singh’s disclosure occurring on the ninth day. The jury has previously heard testimonies from Caroline Ellison and Gary Wang. Ellison, Wang, Singh, and Ryan Salame, ex-co CEO of FTX Digital Markets, confessed to fraud charges associated with Alameda utilizing FTX resources for investments without obtaining users’ acceptance. It remains uncertain whether Salame will testify or SBF will be brought to the stand by the defense.
Before summoning Singh, the prosecution called upon FTX user Tareq Morad to express how he perceived his deposits would be utilized by the crypto exchange and how his perception of Bankman-Fried affected his decision to invest. Despite hearing about withdrawal issues at FTX in November 2022, Morad stated he considered SBF’s “assets are fine” tweet.
The criminal trial for Bankman-Fried is anticipated to extend until November, upon completing which he is likely to face similar allegations in another courtroom in March 2024. Bankman-Fried vehemently denies all 12 counts of his indictment. During court proceedings, Ellison, Wang, and Singh have confessed to committing unlawful acts along with Bankman-Fried.
Published At
10/16/2023 3:49:03 PM
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