The trial of Sam Bankman-Fried, the former CEO of FTX Exchange, which has plunged the entire cryptocurrency world into crisis, has entered its third week. The latest testimonies have revealed that the company spent approximately $1.3 billion on celebrity promotions.
Current Situation at FTX Exchange
Former FTX engineering director Nishad Singh made a critical statement during the trial. Singh, who testified as a witness in SBF’s case, read a list of deals made with influencers and celebrities at the prosecutor’s request.
It was revealed to the public that the amount of money given to influencers for running advertising campaigns exceeded $1 billion. A similar deal was also made to rename the Miami Heat basketball arena as FTX Arena, with a value of $135 million. However, it was changed to Kaseya Center after the events unfolded.
Furthermore, payments made to famous basketball player Steph Curry, the greatest American football player in history Tom Brady, model Gisele Bundchen, actor Larry David, and Canadian businessman Kevin O’Leary also drew attention. It was disclosed that Steph Curry received $28 million from FTX, while O’Leary had a $14 million deal.
In addition, Nishad mentioned another point. He presented a conversation he had with Bankman-Fried and former FTX executive Gary Wang, highlighting the investments made in K5 Global, owned and managed by Michael Kives and Bryan Baum.
Nishad claimed that his response to this instruction was Bankman-Fried giving his personal money instead of the company’s. It should be noted that in June, FTX tried to reclaim $700 million from K5 Global and ended up suing the company in the process.
SBF Rejects Leadership of Alameda Research
Nishad also addressed an important point, revealing how SBF made decisions regarding Alameda Research. According to Nishad, SBF made all decisions on its own without considering who was authorized. Despite the presence of former girlfriend Caroline Ellison and Sam Trabucco in the management of Alameda Research, Bankman-Fried continued to be the “authorized” person, as shared in court.
As the ongoing trial progresses, it seems inevitable that more significant events will come to light. The exact duration of Bankman-Fried’s potential prison sentence, if found guilty of all these allegations, is still unknown.
