Nishad Singh, the former director of engineering at FTX, faced intense cross-examination during the tenth day of the Sam Bankman-Fried (SBF) trial. Singh, who has pleaded guilty to fraud and conspiracy charges, provided further insights into the inner workings of FTX and SBF’s activities. The focus of the day was on the software bug that led to the alleged misuse of billions of dollars in customer funds.Singh revealed that he had discovered the bug in Alameda’s balance, which caused an $8 billion discrepancy, and that it had been introduced inadvertently by a former employee. He also discussed the extravagant spending culture at FTX and his own involvement in purchasing a luxury property using borrowed funds from the exchange. Singh expressed remorse for his actions and admitted that his spending was “egregious, unnecessary, and selfish.”The cross-examination also touched on FTX’s political donations and Singh’s role as a straw donor. The prosecution presented evidence of meetings and invitations involving SBF and influential figures, including New York City Mayor Eric Adams and former President Bill Clinton. The defense questioned the validity of the phone data presented by the prosecution.The session ended on a lighter note with a humorous remark from Judge Kaplan. As the trial continues, a University of Notre Dame accounting professor is expected to testify as an expert witness to discuss FTX’s finances in the upcoming days. The prosecution’s case is expected to continue until late October, after which the defense will present its theory of the case. SBF has pleaded not guilty to all charges.In related news, evidence revealed during the trial showed that SBF had donated over $230 million to friends, family, politicians, PACs, and special interests. Notable recipients include Mitt Romney and Cory Booker, with the majority going to political groups and PACs. The list also features substantial gifts to family members and individuals connected to the effective altruism community, shedding light on the extent of SBF’s philanthropic activities.Additionally, bankrupt cryptocurrency exchange FTX has proposed a settlement to recover over $9 billion in customer funds. The proposed plan includes requiring customers who withdrew more than they deposited within nine days before the platform’s bankruptcy filing to return 15% of their net withdrawals. This move aims to address “preference” claims and provide certainty to eligible customers while facilitating FTX’s goal of returning customer funds by 2024. The proposal outlines the division of assets and potential clawbacks, with exceptions for certain categories of customers.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Richard Busick, Gabriel Bankman-Fried, Bill Clinton, Eric Adams, Barbara Fried |
| Companies | FTX, Alameda Research |
| Currencies | TOP Network |
| Securities | None |
