During the questioning by Sam Bankman-Fried’s defense team on Tuesday, Nishad Singh, once a part of Bankman-Fried’s empire, admitted to uncertainties in his recollection of past discussions with SBF and fellow FTX executives. However, he revealed active role in political contributions and his interactions with various individuals within Bankman-Fried’s professional and personal network.
Nishad Faces ‘Surprising Amount Of Haziness’
On his second day of testimony, Nishad Singh faced a series of methodical questions from defense attorney Mark Cohen, focusing on Singh’s memory of discussions about a June 2022 Alameda code bug and the FTX team’s luxurious Bahamas accommodation. Singh confessed to a lack of clarity about those 2022 events, uncertain even of his statements to prosecutors earlier in 2023.
Cohen probed deeper, challenging Singh’s views on the financial decisions related to their opulent housing and Alameda’s borrowing practices, with Singh expressing reservations about the appropriateness of these actions.
The trial, which has gained significant attention in the legal communities, centers around alleged illicit activities and financial improprieties within the FTX trading platform and its parent company, Alameda. Bankman-Fried’s defense team seized upon Singh’s “surprising amount of haziness” regarding crucial discussions in June 2022, potentially undermining his reliability as a witness.
The courtroom drama intensified with discussions about an ‘auto deleveraging’ event that FTX experienced in July 2022, an operational setback described as “undesirable” by Singh.
During the trial, defense attorney Mark Cohen highlighted Nishad Singh’s substantial financial dealings with FTX, including receiving millions in bonuses and borrowing $477 million to buy FTX equity, ostensibly for charitable contributions that never occurred. Further, Singh took a $10 million loan for personal reasons, with only part donated.
Nishad Reveals Active Political Ties
Cohen went deep into Singh’s involvement in political spending and his interactions with other key figures in the crypto industry. Cohen’s inquiries revealed Singh’s active role in political contributions, particularly surrounding Prop 12 in California, and his interactions with various individuals within Bankman-Fried’s professional and personal network.
This line of questioning led to the unveiling of connections between Singh and other significant figures in the political sector. The defense highlighted Singh’s agreements and collaborations with individuals like Gabe, Bankman-Fried’s brother, potentially indicating a network of influence and interests that could affect the witness’s perspective and credibility.
During yesterday’s session, Nishad Singh confessed to identifying an $8 billion financial discrepancy within FTX in September 2022. Despite this, he approved certain transactions, suspecting they were improperly drawn from customer deposits, with funds channeled to Sam Bankman-Fried’s associated trading firm, Alameda Research.
This admission follows Singh’s guilty plea, aligning with confessions from other executives like FTX’s CTO Gary Wang and Alameda’s CEO Caroline Ellison. His testimony, affirming statements from fellow employees, underscores the prosecution’s narrative of systematic malpractices among the companies’ senior management, adding weight to the ongoing legal proceedings.
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