The legal battle surrounding former FTX CEO Sam Bankman-Fried has reached an intriguing twist in its third week, with the spotlight shining brightly on Nishad Singh, FTX’s former Director of Engineering and a close associate of Bankman-Fried. Singh’s testimony delivered a significant blow to Bankman-Fried’s defense, revealing crucial details about the downplaying of Alameda Research’s negative balance and questionable financial dealings, despite the reluctance of the team involved.
As the trial unfolds, Singh’s cross-examination promises to unveil even more interesting aspects of this high-stakes legal drama. On October 17, the trial of the former founder of the now-defunct crypto exchange continued, with Nishad Singh taking the stand. Building on his previous revelations, Singh provided further insight into Bankman-Fried’s alleged wrongdoings while facing cross-examination by SBF’s lawyer, Mark Cohen.
During Singh’s direct examination on October 16, he disclosed a conversation between FTX’s co-founder Gary Wang and Adam Yedidia, where Alameda Research’s negative balance swelled to an unexpected $8 billion. Following this revelation, Alameda’s former CEO, Caroline Ellison, shared a spreadsheet displaying the negative balance with him, Wang, and Bankman-Fried. However, as per Singh’s testimony, Bankman-Fried dismissed the alarming figures, attributing them to a mere bug in the system.
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In another revelation, Singh claimed that he took out a loan amounting to $477 million from the exchange on SBF’s advice. However, Singh clarified that the proposed transaction remained purely on paper and never materialized into actual cash.
Despite Singh’s compelling testimony, Bankman-Fried’s defense team, led by Mark Cohen, launched a counterattack during cross-examination. Cohen strategically questioned Singh in a manner that could potentially cast doubts on his credibility, a tactic previously absent during the cross-examination of other witnesses, including Wang and Caroline.
As the courtroom drama intensifies, legal experts and cryptocurrency enthusiasts are closely monitoring the proceedings. The revelations made by Singh have added layers of complexity to the case, raising questions about accountability, transparency, and ethical conduct within the cryptocurrency industry. With Singh’s testimony poised to unveil more hidden truths, the FTX trial continues to captivate the public’s attention, leaving the crypto community on edge, awaiting the next shocking revelation in this gripping legal saga.