Nishad Singh, the former director of engineering at the now-defunct cryptocurrency exchange FTX, has testified in a New York court, shedding light on the authority and actions of the former FTX CEO, Sam "SBF" Bankman-Fried. Singh reportedly revealed that Bankman-Fried had the autonomy to make purchases through Alameda Research at his own discretion. While Caroline Ellison and Sam Trabucco were Alameda's leaders, Singh asserted that Bankman-Fried was ultimately in charge of the company.
Singh described how Bankman-Fried would unilaterally spend Alameda's money despite Singh's independent role within FTX. He shared his concerns about excessive and extravagant spending within Alameda, which he believed contradicted the company's original objectives. Singh recounted that when he raised concerns, Bankman-Fried dismissed them and accused him of spreading suspicion.
Notably, Singh mentioned investments in artificial intelligence startups Anthropic and K5 Global, in which FTX was allegedly directed to invest significant funds. He emphasized that he had requested these investments be made using Bankman-Fried's personal funds rather than FTX's resources.
This testimony came during the ninth day of Bankman-Fried's criminal trial, which began on October 3 in New York. Previous statements from witnesses, including Ellison and Wang, have led to admissions of guilt regarding fraud charges related to Alameda's use of FTX funds to invest without users' consent. Although the trial is ongoing, it remains unclear whether Bankman-Fried will testify in his defense.
Ellison, Wang, and Singh have all admitted to committing crimes involving Bankman-Fried. Ellison confessed to providing fraudulent documents and making misleading statements about Alameda's use of FTX funds, while Wang stated that those responsible "allowed Alameda to withdraw funds without limit." The trial is expected to continue into November, with another court appearance for Bankman-Fried scheduled for March 2024, where he faces similar charges. So far, Bankman-Fried has pleaded not guilty to all 12 counts in the indictment.
