During former FTX CEO Sam “SBF” Bankman-Fried’s criminal trial, the former FTX engineering director, Nishad Singh, revealed that SBF often made unilateral decisions regarding Alameda Research’s expenditures. This testimony provides a glimpse into the inner workings of the cryptocurrency industry and the dynamics of leadership within prominent companies in the field.
Singh’s testimony, which took place during SBF’s trial, indicated that despite Caroline Ellison and Sam Trabucco holding leadership positions at Alameda, it was Bankman-Fried who held ultimate authority over the company. Singh stated that “SBF would unilaterally spend Alameda’s money,” even though he was believed to have a separate role at FTX. He even reportedly threatened to fire Ellison.
Singh’s testimony shed light on his own experience with the spending decisions at Alameda. He mentioned that he often learned of expenditures after the fact, which he found to be excessive and flashy, inconsistent with the company’s objectives. When he expressed his concerns, SBF allegedly dismissed them, stating that Singh did not understand the bigger picture.
AUSA: Who was in charge of Alameda:
— Inner City Press (@innercitypress) October 16, 2023
Singh: Trabucco and Caroline. But ultimately, Sam Bankman-Fried.
AUSA: How did you know?
Singh: One of his computer screens was Alameda. SBF would unilaterally spend Alameda's money. He told me he'd threatened to fire Caroline
Singh described Bankman-Fried as a “formidable character” and expressed his growing distrust of him.
One significant aspect of the trial revolved around investments made by Alameda Research, including those in the artificial intelligence startup Anthropic and K5 Global, an investment firm associated with prominent figures like former United States Secretary of State Hillary Clinton and Hollywood celebrities. Singh testified that SBF instructed him and former Chief Technology Officer Gary Wang to proceed with a $1 billion investment in K5 Global, which raised concerns because it involved FTX funds.
The trial of SBF is ongoing, and his legal team has not yet revealed whether they intend to put him on the witness stand. The case revolves around allegations of fraud related to the use of FTX funds for investments without users’ consent. The trial is expected to continue through November, with another courtroom appearance scheduled for March 2024, where SBF will face similar charges. Bankman-Fried has pleaded not guilty to all 12 counts of his indictment.
In summary, Nishad Singh’s testimony in the trial of Sam Bankman-Fried has shed light on the decision-making dynamics within Alameda Research and the cryptocurrency industry, revealing how the company’s funds were spent and how leadership was exercised. This case is a significant development in the cryptocurrency world and highlights the legal and ethical challenges faced by industry leaders.
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