[TECHCRUNCH] FTX execs blew through $8B; testimony reveals how

This is the best summary I could come up with:

Bankman-Fried had proposed a term sheet to Singh and Wang one night that laid out hundreds of millions of dollars of onuses to Kives and Bryan Baum, co-founder and managing partner of K5.

Bankman-Fried also believed that endorsement deals and even “unpaid partnerships with celebrities” would help increase FTX’s influence to propel its success, said Singh.

The former FTX executive, who also went to high school with Bankman-Fried and was a close friend of his brother, testified that he expressed concern about the company’s spending, but was usually blown off.

Singh recalled one instance where Bankman-Fried got visibly angry with him and said that people like him were “sowing seeds of doubt in the company decisions” and were “the real insidious problem here.”

Singh’s testimony aligned with Yedidia’s that states in June 2022, the executives learned that Alameda owed $8 billion worth of FTX customer money after Ellison shared a Google Doc displaying the “extremely negative” balance.

A feature called “allow negative” let Alameda trade, borrow and withdraw FTX funds in excess of its balance and collateral amounts, according to Singh.

The original article contains 1,081 words, the summary contains 181 words. Saved 83%. I'm a bot and I'm open source!