From backdating transactions to 'excessive' spending, Nishad Singh saw problems throughout SBF's empire — even before he knew the full story.
For the third and final time in the criminal trial of Sam Bankman-Fried, a former member of his inner circle admitted guilt to several crimes and testified that Bankman-Fried committed them too.
Yet Singh also exhibited a seemingly rare ability among FTX employees: he was willing to tell Bankman-Fried 'no.' Unfortunately, in his telling, it made little difference in the end. Singh's cross-examination by the defense will commence tomorrow. Even before Singh knew about the hole at FTX, he testified, he had issues with Bankman-Fried's "excessive" approach to spending.
When Bankman-Fried expressed interest in giving millions to Kives, Singh requested that Bankman-Fried invest his own money into K5 instead, and restrict FTX employees from interacting with K5's staff. Yet records show that Bankman-Fried invested hundreds of millions of dollars into K5 through Alameda Research Ventures LLC.
For helping Telegram build a payment mechanism, FTX would get a portion of TON tokens – cryptocurrency once started by Telegram itself, then abandoned, picked up by enthusiast developers and then adopted by the company for in-app payments. Later the following year, Bankman-Fried made a similar request and asked Singh to transfer the Serum tokens that he and Singh held, along with the holdings of Ellison and Wang, to Alameda's account and backdate the transaction, "to make it appear that Alameda always had more collateral than it did," Singh testified.
"I was blindsided and horrified. I felt really betrayed," Singh testified, describing FTX's betrayal of its users' trust as "so evil." Yet he remained at FTX, despite considering leaving "every day," worrying his departure could lead to a preventable collapse. When the disaster he feared finally came to pass, Singh testified that he "had been suicidal for some days.
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