KEY POINTS
- Singh testified that he only knew about the billion-dollar problem of FTX in September 2022
- The former director of engineering at FTX disclosed he told Bankman-Fried at one point that he wanted to quit
- Bankman-Fried on Singh’s resignation: “I need you Nishad to take this kind of work off my plate”
The third week of the fraud trial of Sam Bankman-Fried, the crypto mogul behind the now-bankrupt crypto empire FTX, continued with its former friend and one of his lieutenants, Nishad Singh, admitting while on the stand that he had “been suicidal for days” and felt “blinded and horrified” in the days leading to the spectacular collapse of the empire they built from the ground up.
Following the explosive testimony given by Caroline Ellison, the 28-year-old former CEO of the now-defunct crypto hedge fund Alameda Research, Singh, the former director of engineering of FTX, took the stand on Monday to tell his story.
Singh said that he learned that Alameda Research had been using the funds of FTX customers only in September 2022 and requested to talk to the founder of both Alameda and FTX, Bankman-Fried.
When asked how he felt upon discovering the hole in the balance sheet, he expressed that he “was blindsided and horrified” and “felt really betrayed.” He also said he just couldn’t leave since he wouldn’t be able to live with himself if his departure meant the collapse of FTX, which he believed was inevitable.
“I felt betrayed, something I’d put blood, sweat, and tears into for five years, turning out so horribly,” Singh said while recalling the “hour and a half” conversation with Bankman-Fried on the spacious balcony that even featured a pool.
“Caroline is freaked out about the NAV situation. Sam said, ‘We are a little short on deliverables,'” Singh narrated.
To provide the jury with a better understanding of the balcony, prosecutor Nicolas Roos shared a photo of the balcony.
While the photo was displayed on the screen, Barbara Fried, the mother of the defendant, appeared perplexed. Singh, a close friend of Gabe Bankman-Fried, Sam’s younger brother, continued with his testimony and appeared agitated while glancing in her son’s direction.
Singh also revealed that he told Bankman-Fried he would quit, noting that he was “not feeling good about this.” However, the CEO of FTX at the time asked him to stay and said, “I need you, Nishad, to take this kind of work off my plate.”
The former director of engineering at FTX recalled that he “was afraid” and shared that “Sam was on edge,” showing “some physical twitches.” Based on these “physical tells,” Singh said he “could tell that my questions were unwelcome.”
When asked about his mental state, Singh, who used to be a crypto billionaire, said he “had been suicidal for some days.”
In his interview with Vox released on Nov. 16, SBF, as the ex-CEO is more popularly known in the crypto space, revealed that Singh was “ashamed and guilty.”
