Nishad Singh, a former FTX engineering director, recently entered a guilty plea in a deal with US prosecutors, facing up to 75 years in prison.
The man's testimony comes amid Sam Bankman-Fried's ongoing criminal trial, where Singh divulged previously undisclosed details about the crypto exchange's operations.
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Nishad Singh has agreed to plead guilty to fraud charges as a part of an arrangement with the United States Justice Department. However, the man expressed hope of avoiding jail time altogether as part of the plea agreement.
Singh's testimony provided new insights into the financial strategies employed by FTX before its downfall, which included a massive $1.3 billion endorsement spending spree on celebrities and athletes like Tom Brady, Gisele Bündchen, and Steph Curry.
He also disclosed that the crypto exchange's former chief technology officer, Gary Wang, had borrowed $13 billion from FTX on behalf of Alameda Research, an issue Bankman-Fried apparently took in stride.
During the trial, Singh conveyed his sense of betrayal, stating:
I felt betrayed, something I’d put in blood, sweat and tears for five years turning out so horrible.
In addition to discussing the endorsement deals and borrowed funds, Singh also revealed that Bankman-Fried had considered a $120 million investment to acquire the messaging app Telegram and used FTX funds for political donations.
Emotional and financial stress took a toll on Singh. When liquidity issues surfaced at FTX in November 2022, Singh disclosed that he had contemplated suicide. He also accused Bankman-Fried of wasting Alameda's funds on ventures such as artificial intelligence startup Anthropic and the firm K5 Global.
Bankman-Fried is standing trial for seven fraud-related counts, pleading not guilty to all charges. He also faces an additional five counts in a second trial scheduled for March 2024.
Nishad Singh's testimony adds a significant layer to the ongoing criminal proceedings against Sam Bankman-Fried, further complicating the intricate case. As Bankman-Fried faces multiple fraud charges, Singh's disclosure of internal financial dealings at FTX casts a shadow on the fallen crypto exchange's legacy.
