The ongoing trial of Sam Bankman-Fried, the former CEO of the defunct crypto exchange FTX, has attracted significant attention. In the latest development, FTX’s Director of Engineering, Nishad Singh, appeared as a key witness, shedding light on the alleged wrongdoings of Bankman-Fried. Alongside other close associates, Singh provided explicit details, further complicating the case against the former CEO.

Sam Bankman-Fried Was At The Helm Of Everything:
During his testimony, Nishad Singh took accountability for his involvement in fraud and campaign finance violations, along with Bankman-Fried, Caroline Ellison, and Gary Wang. Building upon the testimony of previous witnesses, Singh emphasized Bankman-Fried’s central role in the operations of the exchange. Notably, he highlighted that while Wang and Bankman-Fried were in charge, it was primarily the former who handled endorsement deals, amounting to a staggering $1.3 billion.

Singh reiterated that Bankman-Fried remained “ultimately” in charge of Alameda, even after the appointment of Sam Trabucco and Ellison as CEO. This assertion was based on Bankman-Fried’s unilateral control over the trading firm’s finances and his ability to exert influence, as revealed by Singh’s confirmation of Ellison’s previous testimony regarding threat of termination.

Unveiling the Bug and Expanding Negative Balances:
Singh confessed to his role in creating a bug that concealed accurate accounting for Alameda’s account. This bug contributed to the growth of Alameda’s negative balance, reaching a staggering $8 billion. Based on Singh’s account, the FTX engineer overheard a conversation between Wang and Adam Yedidia, wherein they discussed the growing negative balance.

While Singh explained the presence of an “allow negative” flag that permitted negative balances for Alameda, he claimed to be unaware of its intended purpose during its creation. Originally believed to assist FTX in recovering locked forms of FTT, the exchange’s utility token, Singh was surprised to learn of its alternative use and its implications.

Facts About FTX Campaign Finance Violations:
Under the circumstances that Judge Kaplan allowed the prosecution to present evidence of Bankman-Fried’s alleged campaign finance scheme, Nishad Singh disclosed further insights during his testimony. Singh admitted his role as a straw donor, stating that the donated funds originated from Alameda, which inadvertently included customers’ funds. Bankman-Fried spearheaded these donations alongside his brother Gabriel and former FTX executive Ryan Salame. Singh’s involvement primarily entailed using his bank account to channel these funds and signing the checks related to the campaign.

Upcoming Proceedings:
As the trial progresses, Singh’s cross-examination is scheduled for October 17. The prosecution expects to conclude presenting their main witnesses during this week, with possibly one or two more witnesses set to testify next week.

The trial proceedings against Sam Bankman-Fried continue to shed light on the alleged wrongdoings surrounding FTX. Nishad Singh’s testimony solidifies the claims made by other witnesses and further implicates the former CEO in fraud and campaign finance violations. As the trial proceeds, the public anticipates further revelations and developments in this high-profile crypto scandal.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.