Lawyers representing former FTX CEO Sam “SBF” Sam Bankman-Fried conducted their cross-examination of Nishad Singh and pressed the former technical director on events that led to Alameda Research using funds from the crypto exchange.
According to courtroom reports on Oct. 17, when questioned by SBF defense attorney Mark Cohen, Singh admitted “there was a lot” he didn’t remember from June to July 2022. The former FTX director reportedly said he had no knowledge of a software bug that inflated Alameda’s liabilities until he overheard a discussion between former FTX chief technology officer Gary Wang and former FTX developer Adam Yedidia.
“It was an $8 billion hole,” Singh said, according to reports on the fallout from the virus. “Caroline posted a screenshot of a diagram showing Alameda’s inexplicable balance problems over time, and the error explained it.”
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Defense attorneys’ cross-examination of Singh marked the 10th day of the SBF criminal trial in New York, where Bankman-Fried faces seven charges related to fraud at FTX and Alameda. Singh testified on October 16 that he had suicidal thoughts in November 2022 amid FTX’s financial difficulties and expressed concern about Alameda’s lack of transparency in its use of FTX customer funds for investments.
Related: FTX customers could receive $9 billion in compensation by mid-2024
Prosecutors are expected to continue calling witnesses to testify about SBF’s alleged actions and the events that led to FTX’s demise until October 26 or 27. Afterwards, the defense team will present its theory of the case. So far, Caroline Ellison, Wang and Yedidia, the former CEO of Alameda, have all testified in court, as have some former FTX clients.
Bankman-Fried’s first criminal trial is expected to conclude in November. He faces five additional charges in a second trial scheduled to begin in March 2024 and has pleaded not guilty to all charges.
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