According to the former director of engineering at FTX, there were allegations that Sam “SBF” Bankman-Fried unilaterally managed Alameda’s finances and had the ultimate authority over the company, rather than Caroline Ellison. Nishad Singh, the former FTX engineering director, reportedly testified in a New York courtroom that SBF had a habit of making decisions regarding Alameda Research independently.
During SBF’s criminal trial on October 16, Singh claimed that, despite the leadership of Caroline Ellison and Sam Trabucco at Alameda, Bankman-Fried was ultimately in control of the organization. Singh, the former engineering director, testified that “SBF would unilaterally spend Alameda’s money,” even though he was ostensibly fulfilling a distinct role at FTX. He also purportedly threatened to terminate Ellison.
Singh mentioned, “I learned of spending [at Alameda] after the fact. I’d complain about the excess and flamboyance, which, in my view, deviated from our company’s original mission. [SBF would] claim that I didn’t comprehend; he was out there engaging with people. I believed we were fleeced for $20 million, but he insisted I was sowing doubt.”
The former engineering director also cited investments in Anthropic, an artificial intelligence startup, and K5 Global, an investment firm associated with prominent figures like former United States Secretary of State Hillary Clinton and Hollywood celebrities. According to Singh, SBF instructed him and former Chief Technology Officer Gary Wang to proceed with a $1 billion investment in the venture capital firm co-owned by Michael Kives and Bryan Baum, K5 Global.
Singh noted, “I requested that it be funded using Sam’s resources rather than FTX’s funds,” as reported.
Singh’s testimony occurred on the ninth day of Bankman-Fried’s criminal trial, which commenced in New York on October 3. Ellison, Wang, Singh, and former FTX Digital Markets co-CEO Ryan Salame have pleaded guilty to fraud charges related to Alameda’s use of FTX funds for investments without user consent. It remains uncertain whether Salame will testify, and the defense team’s intentions regarding SBF’s testimony are unclear.
Before Singh, prosecutors summoned FTX user Tareq Morad on October 16 to share his perspective on how the crypto exchange planned to utilize his deposits and how his perception of Bankman-Fried influenced his decision to invest with the firm. Morad reportedly testified that, amidst reports of withdrawal issues at FTX in November 2022, he trusted SBF’s tweet that assured the safety of his assets.
Bankman-Fried’s criminal trial is expected to extend into November, and he is likely to face similar charges in another court in March 2024. The former FTX CEO has pleaded not guilty to all 12 counts in his indictment.
Thus far in the courtroom, Ellison, Wang, and Singh have all acknowledged their involvement in illicit activities with Bankman-Fried. Ellison admitted to providing fraudulent documents and making deceptive statements regarding Alameda’s use of FTX funds, while Wang asserted that those in charge permitted unlimited fund withdrawals by Alameda.
