FTX founder Sam Bankman-Fried’s trial day 9: Recap 

The third week of FTX founder Sam Bankman-Fried’s historic trial begins as a former FTX buyer and former Chief Engineer Nishad Singh takes the stand. 

Final week, Sam Bankman-Fried’s ex-girlfriend and former Alameda CEO, Caroline Ellison, testified to the prosecutor, revealing how Bankman-Fried allowed her to retain an infinite line of credit score from the trade. Ellison additionally revealed that the FTX founder made a number of political donations within the U.S., bribed Chinese language Officers and tried to realize funding from the Saudi Crown Prince. 

Because the case resumes right now, listed here are the highest highlights: 

Testimony of Tareq Morad, buyer of FTX

• Morad determined to commerce on FTX after seeing Sam Bankman-Fried’s protection on Forbes.
• He initially deposited $500,000 on the trade and had between $250,000-$280,00 on the platform when it went bankrupt.
• His fund was not processed as FTX stopped all withdrawals. 

Testimony of former chief engineer Nishad Singh

• Nishad Singh admits to committing fraud and monetary violations. 
• Singh was intimidated by Bankman-Fried, and he didn’t belief him. They each lived as housemates within the Albany penthouse within the Bahamas.
• Singh says he was a billionaire by taking loans from FTX for private purchases and donations.
• Certainly one of Bankman-Fried’s pc screens was for managing operations at Alameda; he used to spend Alameda’s cash and threatened to fireplace Ellison at one level.
•  Singh mentioned that Bankman-Fried spent cash excessively and was very flashy.
• They went to Kazakhstan to go to Genesis Digital Belongings Mining and spent hundreds of thousands on the journey. 

• Bankman-Fried arrange and selected the $500 million funding in Anthropic from Alameda.
• The FTX founder met fashionable celebrities and politicians at a post-Tremendous Bowl occasion in Michael Kives’ home. This included Hilary Clinton, Leonardo DiCaprio, Orlando Bloom, Kate Hudson, the husband of Kamala Harris and extra.
• Perry, Bloom, and Kives later visited Bankman-Fried in his Albany Penthouse within the Bahamas.
• The FTX founder despatched Singh and Gary Wang a time period sheet to supply hundreds of thousands in bonuses to Kives & Bryan Baum and in addition to make a billion-dollar funding of their VC agency K5.
• Singh requested Bankman-Fried to make these investments along with his personal cash somewhat than FTX’s funds.
• The deal of FTX Enviornment, Tom Brady, Kevin O’Leary, Larry David and Steph Curry accrued to $1.3 billion.
• Singh mentioned the acquisition of the Albany penthouse was too flashy and suggested SBF in opposition to it.
• Singh designed the ‘Enable Adverse’ bug on FTX’s backend that allowed Alameda to withdraw $8 billion in credit score.
• Singh proposed shutting down Alameda on FTX and shutting some liquid markets.
• At one level, Alameda was borrowing $13 billion from FTX, however FTX itself didn’t have that a lot funds.
• Bankman-Fried and Ryan Salame made political donations in Singh’s identify. Donations to the Democratic occasion had been made beneath Singh’s identify, and the funds got here from FTX’s buyer funds.

• When the crypto market collapsed, and FTX was unable to course of withdrawals, Singh says he grew to become suicidal.
• The previous FTX chief engineer emphasised that he knew concerning the fraudulent association between FTX and Alameda ‘very late within the sport’. 

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