FTX's Nishad Singh Reveals Bankman-Fried's Careless Spending, Accounting Fraud – Coinpedia Fintech News

  • Nishad Singh, a former FTX executive, testified at Sam Bankman-Fried’s fraud and conspiracy trial.

  • Singh admitted to altering records to inflate FTX’s income, but also criticized Bankman-Fried’s extravagant spending.

  • Bankman-Fried’s attorney challenged Singh’s portrayal of his client, pointing to the benefits of sponsorship deals and marketing experts.

Sam Bankman-Fried’s legal team encountered a mixed bag of outcomes when questioning their third and final key witness, former FTX executive Nishad Singh. This took place during the ongoing fraud and conspiracy trial, where Singh had earlier expressed unease about FTX’s extravagant purchase of a $30 million penthouse in the Bahamas, initially meant for the company’s use.

What was discovered? Here are the details.

Nishad Singh On the Stand

Nishad Singh’s testimony introduced fresh perspectives into the ongoing legal battle. He repeatedly criticized Sam Bankman-Fried’s actions, mainly focusing on concerns about extravagant spending.

He’s not so innocent himself!

Nonetheless, Singh admitted to benefiting from company perks, such as obtaining a $3.7 million home in the scenic San Juan Islands through a company loan. This occurred during a period of financial trouble for FTX.

Singh revealed that he began to feel guilty when he participated in altering records related to staking fees for FTX’s crypto token, Serum. Staking involves locking up tokens to verify blockchain transactions and earn rewards, often in the form of additional cryptocurrency. These changes inflated FTX’s reported income to over $1 billion, with Singh asserting that Bankman-Fried had instructed him to do so.

Also Read: U.S Prosecutors Probe Former FTX Engineer Nishad Singh; a Huge Blow To SBF?

Nishad Singh is the third member of Sam Bankman-Fried’s inner circle to testify, and he had earlier admitted to felonies linked to the troubles at FTX and its partner, Alameda Research. As part of his deal with the government, Singh agreed to surrender a house on Orcas Island.

 Cross-Examination Reveals New Perspectives

During the cross-examination, Mark Cohen, Bankman-Fried’s attorney, aimed to challenge Singh’s portrayal of Bankman-Fried – and managed to do so, to some extent.

Under Cohen’s questioning, Singh acknowledged that sponsorship deals could be beneficial for FTX’s growth. The company also enlisted marketing experts to advise Bankman-Fried. Singh further disclosed that not all of the company’s venture investments were unwise, pointing to FTX’s $500 million investment in Anthropic, an AI company whose valuation had subsequently skyrocketed.

Read More: FTX Margin System Controversy: Was CEO Bankman-Fried Defrauding Investors?

The Verdict

Despite initial struggles, Cohen managed to cast doubt on Singh’s image as a business partner burdened by guilt. The consequences of Nishad Singh’s inconsistent testimony on the overall trial’s outcome and whether they will favor Sam Bankman-Fried and FTX remain uncertain.

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