- SBF’s unilateral decisions at Alameda caused concerns and distrust, says Nishad Singh.
- An ongoing trial implicates key FTX figures in fraud-related charges.
In a series of shocking revelations during the ongoing FTX trial, former FTX Engineering Director Nishad Singh testified in a New York courtroom on October 16. He revealed that former CEO Sam Bankman-Fried had a history of making unilateral decisions regarding purchases made through Alameda Research, a cryptocurrency trading firm, despite his purported separation from FTX.
Singh testified that while Alameda’s former CEO and SBF’s alleged ex-girlfriend, Caroline Ellison, and Sam Trabucco led Alameda, Bankman-Fried remained the ultimate authority within the company. He further disclosed that “SBF would unilaterally spend Alameda’s money,” often without his knowledge, and even threatened to fire Caroline Ellison.
During his testimony, Singh expressed his concerns about the excessiveness and lavish spending habits that deviated from the company’s original vision. He stated, “I thought we were fleeced for $20 million, and he said I was sowing doubt.” Ultimately, Singh grew to distrust Bankman-Fried due to his management style.
The former engineering director also shed light on investments made in startups like Anthropic and K5 Global, an investment firm associated with high-profile figures such as former U.S. Secretary of State Hillary Clinton and Hollywood celebrities. According to Singh, SBF instructed him and former Chief Technology Officer Gary Wang to proceed with a $1 billion investment in K5 Global. It raised concerns about the source of funds.
Looking Back
Singh’s testimony took place on the ninth day of Bankman-Fried’s ongoing criminal trial, which began on October 3. The jury had already heard testimonies from key witnesses in the case, Ellison and Wang. They both pleaded guilty to fraud charges. It is related to Alameda’s use of FTX funds for investments without user consent. Former FTX Digital Markets co-CEO Ryan Salame, who also pleaded guilty, is not expected to testify during the trial.
Throughout the trial, Ellison, Wang, and Singh all admitted to engaging in illegal activities in conjunction with Bankman-Fried. Ellison confessed to providing fraudulent documents and making misleading statements about Alameda’s use of FTX funds. Wang revealed that Alameda had unlimited withdrawal privileges, further implicating the former CEO.
SBF’s criminal trial is scheduled to continue through November. It is with the likelihood of a subsequent court appearance in March 2024 to face similar charges. Bankman-Fried has pleaded not guilty to all 12 counts of his indictment.
