FTX’s Own Executive Tipped Off Bahamian Regulators to Possible Fraud

As thenews of FTX ’s collapsekeeps roll in , the twists keep come . We ’re now learning that one of the once wildly democratic cryptocurrency exchange ’s executive — Ryan Salame — turn on the caller by tip off Bahamian governor about the potential of dupery according to recently unsealed court text file .

A report card fromFinancial Timesindicates that the company ’s own Ryan Salame , who serve as FTX Digital Markets co - chief executive officer , was the one to ab initio blow the whistle on the exchange ’s shady dealings . Salame allegedly distinguish island regulators on November 9 that client assets were being go for at Alameda Research to embrace fiscal losses , allot to unsealed homage documents cite by Financial Times . A letter to Clayton Fernander — Commissioner of Police for the Royal Bahamas Police Force — from Christina Rolle , who is the Executive Director of the Securities Commission , study :

Regrettably , the Commission was informed today by Mr. Ryan Salame ( “ Mr. Salame ” ) who is the Chairman of FTX Digital that clients ’ assets which may have been held with FTX Digital were transferred to Alameda Research ( “ Alameda ” ) . Alameda and FTX Digital are related companies , specifically , Mr. Samuel Bankman - Fried is a founder of both FTX Digital and Alameda .

Sam Bankman-Fried was arrested in the Bahamas earlier this week and was denied bail after being deemed a flight risk.

Sam Bankman-Fried was arrested in the Bahamas earlier this week and was denied bail after being deemed a flight risk.Image: Tom Williams (AP)

The Commission understood Mr. Salame as advising that the transfer of clients ’ plus in this manner was adverse to the normal corporate government activity and operations of FTX Digital . Put plainly , that such transfers were not allowed and therefore may constitute peculation , theft , dupery or some other law-breaking

The letter further particular that Salame claimed that only three mass had the certificate to transfer client funds between FTX and Alameda — one of whom was Sam Bankman - Fried .

Bankman - Fried wasarrested earlier this weekin the Bahamas at the request of the U.S. oneight criminal count , which admit wire fraud regarding both FTX customers and investors in the interchange and Alameda , money laundering , and securities fraud conspiracy . Bankman - Fried was subsequently denied bail after being deem a flight risk . homage - appoint FTX CEO John Ray III said called the troupe ’s collapse “ an gross bankruptcy of corporate controls at every level of an organization ” in recentHouse testimony .

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