Former Executive Testifies: Alameda Research Used Funds to Make Political Donations
Sam Bankman-Fried, the founder of Alameda Research and the FTX cryptocurrency exchange, directed funds from his hedge fund to be used for political donations after discovering a $13 billion debt owed to FTX customers, according to testimony from a former executive. Nishad Singh, a former member of Bankman-Fried’s inner circle, revealed that he confronted him about the shortfall and was assured that more funds would be raised. In the meantime, Singh said he received transfers from Alameda and allowed associates of Bankman-Fried to use the money for donations to U.S. Democratic candidates and causes. Bankman-Fried has pleaded not guilty to allegations of looting customer funds, using the money for personal expenses and political contributions. The trial is ongoing, and Bankman-Fried’s defense is expected to cross-examine Singh.
Witness Provides Insight into Bankman-Fried’s Political Operation
Singh’s testimony shed light on Bankman-Fried’s political operation, specifically how funds were used to make donations through a “straw donor” scheme. Singh frequently allowed Guarding Against Pandemics, a political action group run by Bankman-Fried’s brother Gabriel, to use his name for donations funded by Alameda. He disclosed that Bankman-Fried or his advisors often directed donations in his name through a Signal group chat. Singh also revealed that another FTX executive had access to his bank account for making wire transfer donations. He acknowledged being aware that the money for these donations came from customer funds, calling himself a “straw donor.” Bankman-Fried has gained recognition as a major donor to the Democratic Party, and Singh argued that it was advantageous to make it appear that the funds were coming from someone else.
Bankman-Fried Faces Charges of Fraud and Embezzlement
Bankman-Fried’s trial, which began on October 3, has revolved around allegations that he allowed Alameda to misappropriate FTX customer funds. Testimony from witnesses such as Gary Wang, FTX’s former technology chief, and Caroline Ellison, Alameda’s former CEO and Bankman-Fried’s ex-girlfriend, has supported the prosecution’s case. Singh’s account has provided the most detailed insight into how Bankman-Fried allegedly used funds for personal expenses and political donations. Prosecutors maintain that Bankman-Fried looted billions from customer accounts to support Alameda, invest in real estate, and contribute over $100 million to U.S. political campaigns. Bankman-Fried’s defense argues that while mistakes were made in running FTX, he did not commit theft. It is expected that the prosecution will wrap up its case soon, after which Bankman-Fried will have the opportunity to present his defense.
Bankman-Fried’s Attorneys Seek Higher Medication Dosage
Bankman-Fried’s defense team requested a higher dosage of medication for him, as he has ADHD and needs a stronger dose of Adderall to fully engage in his defense and decide on testifying. However, U.S. District Judge Lewis Kaplan denied the motion to delay the trial in order to explore options for increasing the dosage.
The trial continues, with Bankman-Fried’s defense having the opportunity to challenge Singh’s testimony and present their case before the jury reaches a verdict.
Disclaimer: This article is based on the courtroom testimony of a witness during a trial and does not imply guilt on the part of the defendant. The information provided is for informational purposes only and should not be construed as legal advice.