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Former FTX executive reveals Bankman-Fried’s lavish spending of $1.13 billion on celebrities

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Ex-FTX executive reveals Bankman-Fried’s lavish spending of $1.13 billion

Nishad Singh, the former director of engineering at FTX, testified during the third week of Sam Bankman-Fried’s criminal trial. 

On Monday, October 16, he revealed that Bankman-Fried, the founder of the failed crypto exchange, had spent large sums of money in a wide range of ways.

From real estate, venture investments, campaign donations, and celebrity endorsements, with the total coming to over $1.13 billion.

Read More: FTX Crypto Fraud Trial: Prosecutors Say Sam Bankman-Fried Built An Empire “On Lies”

Singh’s testimony is crucial for the prosecution’s case.

It directly relates to the alleged disappearance of customer funds originally intended for cryptocurrency investments. 

Bankman-Fried is facing multiple criminal charges, including wire fraud and money laundering, for which he could end up with a prison life sentence.

Singh disclosed that he became aware of financial irregularities around mid-2022. 

He expressed concerns over investments in several companies.

Including a staggering $1 billion allocation to the firm Genesis for a mining company, $499 million to startup Anthropic, and $200 million to investment firm K5.

Read More: US Presidents’ Spiritual Advisor Was Jailed For $3.5 Million Fraud

Of particular concern was the K5 investment.

The court scrutinized Bankman-Fried’s involvement and awarding of hundreds of millions of dollars in bonuses to K5 owners Michael Kives and Bryan Baum.

This investment was connected to a dinner event attended by prominent figures, such as Hillary Clinton, Katy Perry, Orlando Bloom, Leonardo DiCaprio, and Kris and Kylie Jenner. 

Singh voiced his apprehensions to Bankman-Fried, suggesting that the investment was “value extractive” and inquiring whether it used FTX’s funds. 

The records indicated that the funding originated from Alameda.

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The trial revealed a spreadsheet detailing celebrity sponsorship deals.

The total expenditure on celebrity endorsements alone amounted to $1.13 billion.

Despite learning that Fried used customer funds for extravagant spending at FTX, Singh admitted to approving such transactions implicitly and explicitly. 

At one point, he held a 6 to 7 percent ownership in FTX, which, at a valuation of $32 billion in early 2022, made him a paper billionaire.

Singh highlighted that when he raised concerns regarding excessive spending with Bankman-Fried he either received no response or was told that he didn’t understand the full picture. 

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Singh recounted an instance when Bankman-Fried lashed out over a financial loss of $20 million.

He blamed people like Singh for sowing doubt and causing issues.

Bankman-Fried’s lawyers have filed a late-night appeal requesting additional medication for their client.

He previously disclosed using medication for depression and ADHD. 

The trial is expected to last well into November.

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