Former FTX engineering director, Nishad Singh, made explosive revelations about the management and spending habits of Sam “SBF” Bankman-Fried, the former CEO of Alameda Research. Testifying in a New York courtroom, Singh claimed that Bankman-Fried made purchase decisions for the company single-handedly, despite Caroline Ellison and Sam Trabucco leading Alameda. Singh expressed his concerns about the excessive spending and flashy purchases, stating that it went against the company’s goals.
Singh further revealed that Bankman-Fried had ordered him and former chief technology officer, Gary Wang, to make a $1 billion investment in K5 Global, an investment firm linked to notable figures like Hillary Clinton and Hollywood celebrities. Singh requested that the investment be made with Bankman-Fried’s personal funds rather than using FTX’s money, implying a lack of trust in the former CEO’s judgment.
Describing Bankman-Fried as a formidable character, Singh’s testimony shed light on the dynamics within Alameda Research. The ongoing criminal trial against Bankman-Fried, who has pleaded not guilty to all 12 counts of his indictment, is expected to continue until November.
Prior to Singh’s testimony, FTX user Tareq Morad shared his experience of how the crypto exchange used his deposits and how Bankman-Fried’s actions influenced his decision to invest with the firm. This added weight to the allegations against the former CEO.
Looking ahead, Bankman-Fried’s trial is anticipated to extend until March 2024, where he will face similar charges. In a significant development, Ellison, Wang, and Singh, all admitted to fraud charges related to Alameda’s unauthorized use of FTX funds. Their pleas further underline the allegations against Bankman-Fried and the violations committed by the company under his leadership.
As the trial continues, these revelations raise questions about the governance and management practices within the crypto industry. The outcome of Bankman-Fried’s trial may have far-reaching implications for the sector, as regulators and investors closely watch the proceedings to evaluate the accountability and transparency of market participants.