Singh, who has known Bankman-Fried since high school and previously worked at Facebook before joining Alameda Research, FTX's sister hedge fund, in 2017, has accused the founder of excessive spending on venture capitalism and celebrity endorsements.
Singh's testimony, as reported by CNBC, reveals his discomfort with the company's financial practices. He stated that he felt "embarrassed" and "ashamed" about the company's spending habits, which he described as "reek[ing] of excessiveness" and "flashiness." Despite his reservations, Singh admitted to approving the spending, even after becoming aware that customer funds were involved.
The court documents presented during the trial include a spreadsheet detailing FTX's investments. These include a $1 billion investment in cryptocurrency platform Genesis, $499 million in AI start-up Anthropic, and $200 million in investment firm K5 Global. K5 Global, co-founded by Michael Kives, a former aide to Senator Hillary Rodham Clinton's Chief of Staff, Huma Abedin, boasts a portfolio that includes investments in SpaceX, the Boring Company, and Kendall Jenner's 818 Tequila.
Singh alleges that Bankman-Fried provided him with a terms sheet outlining hundreds of millions in bonuses for Kives and K5 co-founder Bryan Baum. He also claimed that the funds for these investments originated from Alameda, which has a $65 billion line of credit with FTX. This relationship, according to Singh, resulted in an $8 billion debt comprised of customer deposits.
The court also received a separate spreadsheet detailing FTX's celebrity sponsorship deals. These include a $205 million deal for the naming rights to Miami's then-FTX Arena, $150 million to become the "official cryptocurrency exchange brand" of Major League Baseball, $50 million to NFL legend Tom Brady, $28.5 million to NBA star Steph Curry, and $10 million to "Seinfeld" creator Larry David. In total, FTX reportedly spent $1.13 billion on endorsement deals.
Singh's testimony follows accusations made by Caroline Ellison, former head of Alameda and Bankman-Fried's ex-partner. Ellison accused Bankman-Fried of using customer deposits to bribe Chinese officials to gain access to funds trapped in China. She also alleged that the company attempted to recover the money through accounts set up in the names of Thai prostitutes.
Bankman-Fried, who Singh described as a "formidable character," has yet to respond to these allegations. The case continues to unfold, with the court and the public awaiting further revelations about FTX's financial practices.