Amidst inquiries from the prosecution on October 16, former FTX engineering director Nishad Singh underwent rigorous cross-examination by Sam Bankman-Fried’s defense team.
Legal representatives acting on behalf of Sam “SBF” Bankman-Fried pursued their interrogation of Nishad Singh, the ex-engineering director. They probed the sequence of events leading to Alameda Research tapping into funds from the cryptocurrency exchange. As reported from the courtroom on October 17, Singh conceded that there were significant gaps in his recollection from June to July 2022 when questioned by SBF defense attorney Mark Cohen. Allegedly, Singh professed ignorance about a software glitch amplifying Alameda’s liabilities until he overheard a conversation between former FTX chief technology officer Gary Wang and ex-FTX developer Adam Yedidia.
“An $8 billion gap,” Singh stated, recounting the aftermath of the bug. Reports detailed Caroline posting a screenshot depicting Alameda’s unexplained balance fluctuations over time, with the bug providing an explanation. The cross-examination by the defense unfolded on the 10th day of SBF’s criminal trial in New York. Bankman-Fried faces seven charges related to fraud at FTX and Alameda. Singh’s testimony on October 16 revealed his struggles with suicidal thoughts amid FTX’s financial turmoil in November 2022. He expressed concerns about the lack of transparency in Alameda’s utilization of FTX customer funds for investments.
The prosecution is poised to summon more witnesses, shedding light on SBF’s alleged actions and the events precipitating FTX’s downfall until October 26 or 27. Subsequently, the defense team will articulate its case theory. Former Alameda CEO Caroline Ellison, along with Wang and Yedidia, have already testified, alongside a few former FTX clients. Bankman-Fried’s inaugural criminal trial is anticipated to conclude in November. Another trial, featuring five additional counts, is scheduled for March 2024, to which he has pleaded not guilty.
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