Nishad Singh, the former director of engineering at FTX, continued to testify and underwent rigorous cross-examination by defense lawyers on the tenth day of the Sam Bankman-Fried (SBF) trial.
Singh, who has previously stated that he felt intimidated and humiliated by SBF, continued to reveal insights into the inner workings of the cryptocurrency exchange and SBF’s activities.
Like previous witnesses — including Caroline Ellison and Gary Wang — Singh has pleaded guilty to fraud and conspiracy charges and has agreed to cooperate with prosecutors in their case against SBF.
The software bug
Singh’s cross-examination shed further light on a series of events leading up to the alleged misuse of billions of dollars in customer funds. The day was marked by revelations about Singh’s involvement and the extravagant spending culture at FTX.
Singh told the jury that he nearly resigned from FTX in the fall of 2022 after discovering the massive misuse of customer funds. He characterized the scale of wrongdoing as “enormous.”
Upon the defense’s questioning, Singh detailed the discovery of a software bug in Alameda’s balance in mid-June 2022, which had caused discrepancies totaling about $8 billion. The bug allowed Alameda to borrow billions from FTX users. It had been introduced inadvertently by a former employee and played a pivotal role in the company’s financial turmoil.
Singh said the bug had initially escaped his notice, and he only became aware of it after overhearing a conversation among FTX personnel.
Singh described the palpable sense of relief among team members when they discovered that the balance wa
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Author: Assad Jafri
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