Former FTX engineering chief, Nishad Singh, testified in court on Monday about his one-on-one meetings with Sam Bankman-Fried, the founder of the crypto firm. Singh revealed that he had rare face-to-face discussions with Bankman-Fried to discuss the dire financial situation of FTX.
Singh, who had previously worked with Alameda Research before joining FTX, asked for a meeting with Bankman-Fried after learning about Alameda’s borrowing of $13 billion from FTX. Up until that point, Singh believed that FTX had more assets than liabilities. The meeting between Singh and Bankman-Fried took place on the rooftop deck of a luxury residential building in the Bahamas.
Singh, as part of a plea deal, is cooperating with the prosecution and has pleaded guilty to multiple charges. Bankman-Fried, on the other hand, faces seven criminal fraud charges and has pleaded not guilty.
During their conversation, Bankman-Fried reassured Singh that there was nothing to worry about regarding the net asset value (NAV) of the company. When questioned about the $13 billion shortfall, Bankman-Fried acknowledged the shortage of deliverables but expressed confidence in the company’s ability to deliver $5 billion quickly and more in the coming weeks.
Singh expressed his frustration and feeling betrayed by the company. He considered leaving but was unsure of the consequences if the business were to fail. Bankman-Fried informed Singh of his upcoming travel plans with FTX investor Anthony Scaramucci.
In a subsequent meeting at Bankman-Fried’s second Bahamas apartment, Singh contemplated quitting but instead inquired about the plan to fill the $13 billion hole. Bankman-Fried emphasized the importance of FTX’s success and believed that Singh played a vital role in achieving it.
According to Singh’s testimony, Bankman-Fried appeared tense and agitated during the conversation. Singh apologized to Bankman-Fried for asking for the meeting.
Singh could face a maximum of 75 years in prison, but he hopes to avoid jail time.
The trial continues, and the defense has yet to present its case.
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