Sam Bankman Fried’s legal team encountered mixed results while questioning the government’s third and final key witness, former FTX executive Nishad Singh. In his previous testimony, Singh expressed discomfort over FTX’s extravagant purchase of a $30 million penthouse in the Bahamas, intended as a corporate retreat.
Nishad’s Testimony Adds New Dimensions to the SBF Legal Battle
Nishad Singh, formerly FTX’s chief of engineering, took the stand for the second day as a prosecution witness in the fraud and conspiracy trial. In his earlier testimony, Singh expressed his discomfort over FTX’s extravagant purchase of a $30 million penthouse in the Bahamas, a property meant for company use.
Singh’s testimonial opened up new angles in the ongoing legal battle. During his testimony, he frequently criticized Sam Bankman-Fried’s actions, highlighting concerns over lavish spending.
However, Singh admitted to capitalizing on job perks, including acquiring a $3.7 million home in the scenic San Juan Islands using a company loan, all while FTX was heading toward financial turbulence.
Singh revealed that he began to feel like he’d done something wrong when he helped change records about staking fees for FTX’s crypto token, Serum. Staking involves locking up tokens to validate blockchain transactions and earn rewards, like more cryptocurrency. These changes boosted FTX’s reported income to over $1 billion, and Singh said Bankman-Fried directed him to do it.
Nishad Singh is the third member of Sam Bankman-Fried’s inner circle to testify, and he had earlier admitted to felonies linked to the troubles at FTX and its partner, Alameda Research. As part of his deal with the government, Singh agreed to surrender a house on Orcas Island.
The Cross-Examination
During the cross-examination, Bankman-Fried’s attorney, Mark Cohen, attempted to challenge Singh’s portrayal of Bankman-Fried as a founder who lacked principles and indulged in excessive spending.
Singh, under Cohen’s questioning, acknowledged that sponsorship deals could be beneficial for FTX’s growth and that the company employed marketing experts to advise Bankman-Fried.
Singh also revealed that not all of the company’s venture investments were ill-advised, citing his interest in Anthropic, an AI firm in which FTX invested $500 million and whose valuation had subsequently soared.
Despite some early struggles, Cohen punched holes in Singh’s image as a business partner overwhelmed by guilt.
It remains to be seen how Nishad Singh’s testimony inconsistencies will impact the overall trial’s outcome and whether they will favor Sam Bankman-Fried and FTX.
