The Testimony Begins
Nishad Singh, once a top-ranking executive at FTX and an old high school friend of Bankman-Fried, has become one of the main witnesses in the unfolding criminal trial of Bankman-Fried. In his statement, Singh claims to have noticed an unsettling discrepancy – an estimated $8 billion from FTX customers had vanished. This revelation coincides with other testimonies from Bankman-Fried’s closest associates.
“I started off deeply admiring and respecting him, but my perceptions altered with time,” confessed Singh about his long-time friend, Bankman-Fried.
Alameda Research and its Intricate Ties with FTX
Alameda Research, a trading firm closely connected to Bankman-Fried, is alleged to have been the recipient of these misdirected funds. Singh described the resultant financial void as “gargantuan.”
Before FTX came into existence, Singh was an Alameda employee. He shed light on the fact that from FTX’s early days, Alameda accounts were the storage site for FTX client funds, a strategy apparently adopted to bypass FTX’s challenges in creating its own accounts.
Involvement in Diverting FTX User Deposits
Singh revealed that in 2019, he was tasked with creating systems that channeled FTX client deposits straight to Alameda bank accounts. Furthermore, he was responsible for embedding wire instructions on the FTX website, leading unsuspecting clients to transfer their money into bank accounts under Alameda’s jurisdiction.
Singh clarified, “To the best of my recollection, no one ever mentioned misappropriating client funds. Both Sam and other associates made it clear that Alameda was not enjoying any undue advantages.”
FTX’s Political Donations Web
FTX’s political donation machinery was sophisticated, according to Singh’s revelations. Singh was involved in a process where he was required to approve wire transfers, initiated by FTX’s executive Ryan Salame, from his Prime Trust account. Further adding to the intrigue, Singh admitted to having autographed blank checks handed to Gabe Bankman-Fried, the defendant’s sibling, which were then employed as political contributions.
