FTX CEO Sam Bankman-Fried trial update: Witness Nishad Singh exposes SBF’s lavish spending habits

The trial of Sam Bankman-Fries, the founder of the failed crypto exchange FTX, continues with revealing testimony from Nishad Singh, a former FTX director.

Singh detailed how SBF spent large sums of money on various ventures, including real estate, investments, campaign donations, and celebrity endorsement.

Singh’s testimony is a part of the prosecution’s efforts to shed light on the alleged mismanagement of billions of dollars in customer funds intended for cryptocurrency investments, a critical aspect of the case.

During Singh's testimony, he revealed that he frequently expressed his concerns to Bankman-Fried about the company's excessive spending. He described how the level of spending seemed excessive and flashy and that it made him feel embarrassed and ashamed.

The core issue of the case revolves around what happened to the vast sums of customer funds that were supposed to be invested in cryptocurrency and held in client accounts but later vanished.

Singh, like other witnesses, is cooperating with the prosecution as part of a plea deal he entered in February. In his plea deal, Singh admitted guilt to several charges, including conspiracy to commit securities fraud, money laundering, and campaign finance law violations.

Singh explained his interactions with SBF, which began when they met during high school. SBF’s deep involvement in the technical aspects of FTX and Alameda Research was highlighted, indicating his role in designing crucial systems for FTX.

The witness also testified about living with Bankman-Fried in the Bahamas, where he became aware of significant financial discrepancies and the extensive investments made in 2021. These investments included large sums given to companies like Genesis, Anthropic, and investment firm K5, which was the most troubling due to the significant bonuses offered to its owners. The witness shared his concerns about the value of these investments.

In Singh's evidence, a spreadsheet containing celebrity sponsorship deals was made public. It included agreements with former NFL star Tom Brady, Gisele Bundchen, Stephen Curry, Larry David, and the naming rights to the basketball arena for the Miami Heat.

He displayed to the jury a picture of Bankman-Fried at the 2022 NFL Super Bowl with celebrities Katy Perry, Orlando Bloom, and Michael Kives. Kives was a former employee of Hillary Clinton aide who managed K5, an investment company that Singh claimed Bankman-Fried referred to as a ‘one-stop shop’ for gaining access to powerful individuals and which spent $1.13 billion (roughly Rs. 9,400 crores).

Despite Singh's growing concerns and awareness that customer funds were involved in FTX’s lavish spending, he admitted to allowing these transactions to proceed.

The trial also addressed Bankman-Fried's personal use of medication for depression and attention deficit hyperactivity disorder (ADHD), as the defence requested additional medication before his appearance in court.

Stay tuned to Web3Cafe for all the updates from the crypto trial of the century.