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News

FTX Director Nishad Singh Was Threatened By SBF

October 17, 2023 - Around 2 mins mins to read

Key Points:

  • FTX Director Nishad Singh testifies about Sam Bankman-Fried’s intimidating behavior and lavish spending in court.
  • He reveals a critical $8 billion software bug on the FTX exchange and how FTX executives handled it.
In the ongoing trial of cryptocurrency mogul Sam Bankman-Fried, Nishad Singh, a key member of Bankman-Fried’s inner circle and the former director of engineering at FTX, faced cross-examination on Tuesday, revealing intriguing details about his experiences within the company.
FTX Director Nishad Singh Was Threatened By SBF

Testimony of FTX Director Nishad Singh on FTX’s Inner Workings

According to Bloomberg, the testimony of FTX Director Nishad Singh on Monday unveiled a sense of intimidation and humiliation he felt working with Bankman-Fried, as well as highlighting extravagant spending by the FTX co-founder, including a Bahamian penthouse and political donations.

During cross-examination by Bankman-Fried’s lawyer, Mark Cohen, Singh was closely questioned about the discovery of a critical software bug in mid-June 2022, which had resulted in an $8 billion discrepancy in Alameda’s balance on the FTX exchange. FTX Director Nishad Singh explained that Caroline Ellison provided data that clarified many discrepancies, ultimately revealing a negative balance of $11 billion instead of an even larger negative figure.

Singh Shares Crucial Insights in Crypto Mogul’s Trial

Singh also mentioned a lengthy discussion over Google Meet involving Bankman-Fried, Ellison, Gary Wang, and himself. It was revealed that Adam Yedidia, a previous witness, had inadvertently introduced the bug in 2021.

When questioned about FTX’s spending on celebrity endorsements and other deals, FTX Director Nishad Singh stated that it was Bankman-Fried’s responsibility to make those determinations. He acknowledged that such spending could have business benefits depending on the circumstances but highlighted an investment in a tequila brand run by a celebrity as an example of excessive spending.

Similar to previous witnesses in the trial, Caroline Ellison and Gary Wang, Singh has pleaded guilty to fraud and conspiracy charges and has agreed to cooperate with prosecutors.

Coincu will continue to update the situation related to Sam Bankman-Fried, you can find out more information through this article.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Caroline Ellison

FTX

FTX Director Nishad Singh

Gary Wang

Sam Bankman-Fried

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.