Former FTX executive's testimony: Employees privately bought a large amount of SRM; previously collaborated with Telegram to acquire a substantial amount of TON tokens
Research institution BitMEX Research has recorded a substantial amount of testimony from former FTX Chief Technology Officer Nishad Singh, even claiming that FTX's revenue in 2021 was fabricated.
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Serum SRM Private Placement: FTX Employees Buy In
Nishad Singh, when questioned about the falsification of Alameda's balance sheet, revealed several things:
SBF had inquired about whether all of Alameda's sub-accounts could be included in the system.
SBF had inquired about whether the SRM holdings of Caroline Ellison, Gary Wang, and Nishad Singh could all be included in the balance sheet.
- These measures were all aimed at making Alameda's balance sheet "look" like it had a higher collateral net worth over a certain period of time.
Nishad Singh stated:
We, like other employees, bought a large amount of SRM tokens in the early days of Serum's establishment. SBF could decide how much each person could buy, and I believe everyone bought the maximum amount.
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Previously Collaborated with Telegram, Set to Receive Large Amount of TON Tokens
When SBF attempted to raise funds in the Middle East in September 2022, a proposal was made to Telegram, including details such as:
SBF had announced to the "big shots group" about the deal between FTX and Telegram.
FTX would establish payment services for Telegram to obtain hundreds of millions of dollars in TON tokens.
This payment service would not bring much benefit to Telegram, but SBF could receive a large amount of tokens as a result.
Nishad Singh expressed:
This made me extremely nervous. Obtaining a large amount of tokens with long unlocking times and uncertain liquidity does not make me happy, especially when the cost comes from user funds.
FTX Exposed for Falsifying Revenue and Spending Big on Marketing
Nishad Singh revealed that he had transferred money from a subsidiary under SBF to FTX to make FTX's revenue appear higher.
SBF had also asked him and Gary Wang:
How can we make FTX's 2021 revenue appear to exceed $1 billion?
SBF later decided to charge for Serum's staking services. This would increase FTX's declared revenue by $50 million and push the annual revenue on the books beyond $1 billion.
According to a report at the time, CNBC claimed to have exclusively obtained "FTX's audited financial statements," stating that FTX's revenue grew tenfold, surpassing $1 billion, while FTX refused to comment on the "leaked financial documents."
It all seems to be a marketing play orchestrated by SBF.
