We continue to witness one of the most sensational trials of recent times. In the trial where former FTX CEO Sam Bankman-Fried is being prosecuted, SBF’s lawyers conducted the cross-examination of Nishad Singh, SBF’s attorney. The former engineering director gave a serious test about the events that led to the use of funds from Alameda Research’s cryptocurrency exchange. This case is expected to be concluded in November.
According to the news that came from the courtroom on October 17th, Singh was interrogated by Mark Cohen, SBF’s defense attorney. Singh admitted that he doesn’t remember much from the period that lasted from June to July 2022.
According to the former FTX executive, he said that he had no knowledge about a software bug that significantly exaggerated Alameda’s obligations until he overheard the dispute between former FTX Chief Technology Officer Gary Wang and former FTX software developer Adam Yedidia. Singh said that according to reports created about the emergence of this error, it was an eight billion dollar hole, and then he added the following statement:
“Caroline published a screenshot of a graph showing unexplained balance discrepancies at Alameda over time, and the bug explained it.”
The cross-examination of Singh by the defense lawyers marked the tenth day of the criminal trial in New York, where SBF faces seven charges related to fraud in FTX and Alameda. Singh stated in his testimony on October 16th that he had suicidal thoughts during FTX’s financial difficulties in November 2022. He then expressed his concerns about Alameda not being transparent in using FTX customer funds for investors.
In the ongoing legal process, it is expected that the prosecutors will continue to call witnesses to testify about SBF’s alleged actions and the events that led to FTX’s collapse until October 26th or 27th. After this date, SBF’s defense team will present their theory regarding the case. So far, former Alameda CEO Caroline Ellison, Wang, Yedidia, and several former FTX clients have testified in court.
The first criminal trial against SBF is expected to be completed in November. The famous figure, who will face five more charges in the second trial scheduled to begin in March 2024, has denied all the allegations mentioned in the reports.