During the afternoon testimony on Monday, Nishad Singh, the former FTX engineering chief, shared details of two private meetings he had with Sam Bankman-Fried, the founder of FTX, to discuss the company’s financial struggles. Singh revealed that he would typically have only one annual private meeting with Bankman-Fried, making these meetings quite rare.

Singh requested the meetings after learning about Alameda Research, FTX’s sister hedge fund, borrowing $13 billion from FTX. Prior to this revelation, Singh believed that FTX had more assets than liabilities. The first meeting took place on the rooftop deck of a residential building in the Bahamas, where both FTX and Alameda had an apartment.

It is important to note that Singh is cooperating with the prosecution as part of a plea deal he entered into in February. He has pleaded guilty to multiple charges, while Bankman-Fried has pleaded not guilty to seven criminal fraud charges.

During the first meeting, Singh expressed concerns about the net asset value (NAV) situation, to which Bankman-Fried reassured him that there was nothing to worry about as the NAV was positive. However, when Singh brought up the $13 billion debt, Bankman-Fried acknowledged a shortfall in deliverables but assured Singh that the company could deliver $5 billion quickly and more in the coming weeks to months.

Bankman-Fried mentioned that Alameda could sell assets, raise money from investors, and the upcoming launch of FTX’s U.S. futures would benefit the business. Singh questioned Bankman-Fried about curbing spending, to which he agreed. Despite feeling betrayed by the company, Singh hesitated to leave as he feared the business would fail without him.

Singh also described a second meeting that took place in Bankman-Fried’s second Bahamas apartment. During this meeting, Bankman-Fried appeared on edge and expressed the importance of FTX’s success, stating that Singh played a crucial role in making it happen. Singh observed Bankman-Fried’s agitation during the conversation.

Singh informed the jury that he could face up to 75 years in prison but is hopeful to avoid jail time.