In the ongoing trial of FTX co-founder Sam Bankman-Fried, FTX Director Nishad Singh provided testimony on Monday, shedding light on his experiences working with Bankman-Fried and revealing extravagant spending by the co-founder. Singh expressed feelings of intimidation and humiliation during his time at FTX.
During cross-examination by Bankman-Fried’s lawyer, Mark Cohen, Singh was questioned about a critical software bug discovered in mid-June 2022. This bug resulted in an $8 billion discrepancy in Alameda’s balance on the FTX exchange. Singh explained that Caroline Ellison provided data that clarified many discrepancies, ultimately revealing a negative balance of $11 billion.
Singh also mentioned a Google Meet discussion involving Bankman-Fried, Ellison, Gary Wang, and himself. It was revealed that a previous witness, Adam Yedidia, had inadvertently introduced the bug in 2021.
When questioned about FTX’s spending on celebrity endorsements and other deals, 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.