Lawyers representing former FTX CEO Sam “SBF” Sam Bankman-Fried conducted their cross-examination of Nishad Singh, pressing the former engineering director on events leading to Alameda Research using funds from the crypto exchange.
According to reports from the courtroom on Oct. 17, Singh admitted “there was a lot” he didn’t remember from June to July 2022 under questioning from SBF defense attorney Mark Cohen. The former FTX director reportedly said he had no knowledge of a software bug that exaggerated Alameda’s liabilities until overhearing 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 bug. “Caroline posted a screenshot of a graph showing Alameda’s unexplained balance breaks over time, and the bug explained it.”
Subscribe to our ‘1 Minute Letter’ NOW for daily deep-dives straight to your inbox! ⚖️ Be the first to know every twist and turn in the Sam Bankman-Fried case! Subscribe now: https://t.co/jQOIYUv6IW #SBF pic.twitter.com/gp7zJu5sgy
— Cointelegraph (@Cointelegraph) October 5, 2023
Defense attorneys’ cross-examination of Singh marked the 10th day of SBF’s criminal trial in New York, where Bankman-Fried faces seven charges related to fraud at FTX and Alameda. Singh testified on Oct. 16 that he had been experiencing suicidal thoughts amid FTX’s financial troubles in November 2022, expressing concern about the lack of transparency in Alameda using FTX customer funds for investments.
Related: FTX customers could get $9B shortfall claim payout by mid-2024
Prosecutors are expected to continue calling witnesses to testify on SBF’s alleged actions and the events leading up to the downfall of FTX until Oct. 26 or 27, after which the defense team will present its theory of the case. To date, former Alameda CEO Caroline Ellison, Wang and Yedidia have all testified at trial, as have a few former FTX clients.
Bankman-Fried’s first criminal trial is expected to wrap in November. He will face an additional five counts in a second trial scheduled to begin in March 2024, and has pleaded not guilty to all charges.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
