Former Colleagues Take Stand Against Bankman-Fried In FTX Drama

Table of Contents

• Former FTX Executive Takes Stand
• Bankman-Fried Asked To Mislead Auditors
• Prosecutors' Allegations
• Who Is Nishad Singh?

As the legal proceedings of the case against FTX CEO Sam Bankman-Fried unfold in court, more and more colleagues of the disgraced CEO are testifying against him. 

Former FTX Executive Takes Stand

Nishad Singh, a former colleague and political donor, recently appeared as a key witness in Bankman-Fried's ongoing fraud trial, marking the third member of his inner circle to take a stand. 

Singh, who is a former director of engineering at the now-bankrupt cryptocurrency exchange FTX, had previously pleaded guilty in February to wire fraud and conspiring to violate U.S. campaign finance laws and pledged to assist the government "to the best of his ability." 

Bankman-Fried Asked To Mislead Auditors

In his plea, Singh revealed that Bankman-Fried, the founder and CEO of FTX, had directed him to provide misleading financial information to auditors, creating the illusion of higher company revenues than the reality.

Furthermore, Singh disclosed that he was aware of Alameda Research, Bankman-Fried's crypto-focused hedge fund, borrowing money from FTX customers without their consent. He also admitted to making political donations in his name using funds from Alameda. 

He said, 

"I understood that the donations were in part for the benefit of Sam Bankman-Fried and FTX and their ability to be politically influential."

Prosecutors' Allegations

Prosecutors have accused Bankman-Fried of siphoning billions of dollars from FTX customers to support Alameda Research, purchase real estate, and contribute over $100 million to U.S. political campaigns with the aim of promoting cryptocurrency-friendly legislation. In response, Bankman-Fried maintains his innocence, arguing that while he made errors in managing FTX, he did not engage in fund embezzlement.

Who Is Nishad Singh?

Nishad Singh had experienced a brief stint as a paper billionaire, owning a substantial share of FTX. He received a salary of $200,000 along with equity in FTX as a substitute for bonuses since 2020, when his bonuses could reach as high as $1 million. 

Singh was not only a long-time friend of Bankman-Fried's younger brother, Gabe, but had also known the defendant since his high school days. He was also a notable Democratic political donor, contributing $8 million to campaigns during the 2022 election cycle.

Nishad Singh is the third former member of Bankman-Fried's inner circle to testify at the trial that commenced on October 3. Jurors have already heard testimonies from Gary Wang, FTX's former technology chief, and Caroline Ellison, Alameda's former CEO, and Bankman-Fried's former girlfriend.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.