Nishad Singh, the former FTX engineer has pleaded guilty to fraud charges that could lead to a staggering 75 years in prison. This revelation unfolded during the criminal trial of Sam “SBF” Bankman-Fried on October 16.
Singh’s Deal with the U.S. Justice Department
Singh, seeking to avoid jail time, provided insights into his agreement with the United States Justice Department. The charges, initially announced in February, revolve around defrauding users of the crypto exchange.
During Singh’s testimony, startling details emerged about FTX’s substantial investments in endorsement deals with celebrities like Tom Brady, Gisele Bündchen, and Steph Curry. The former FTX chief technology officer, Gary Wang, informed Singh that Alameda Research had borrowed a staggering $13 billion from the crypto exchange.
Betrayal and Shocking Revelations
Singh expressed feelings of betrayal, stating, “People are going to be freaking out,” as he disclosed the aftermath of the Alameda news. He revealed that SBF suggested investing $120 million in acquiring the messaging app Telegram. He also alleged that Alameda sent FTX user funds for political campaign donations.
As liquidity issues surfaced at FTX in November 2022, Singh disclosed personal struggles. He further mentioned that he “had been suicidal for some days” while grappling with inconsistencies between the exchange’s public statements and its behind-the-scenes activities.
SBF’s Unilateral Spending and Legal Battles
In a startling revelation, Singh testified that SBF would sometimes “unilaterally spend Alameda’s money” in an “excessive” manner. This included investments in artificial intelligence startup Anthropic and the firm K5 Global.
This testimony came on the ninth day of Bankman-Fried’s criminal trial in New York, where he faces seven counts related to fraud. Additionally, a second trial, scheduled for March 2024, involves an additional five counts. Bankman-Fried maintains his innocence, pleading not guilty to all charges.
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