Ryan Salame sang like a canary.
Salame, the former co-CEO of FTX, warned regulators in the Bahamas on Nov. 9 that FTX was transferring funds to Alameda Research to “cover financial losses,” according to court documents.
Regulators wrote in the filing:
The Commission understood that Mr. Salame had indicated that the transfer of client assets in this manner was contrary to the corporate governance and normal operations of FTX Digital. Simply put, these transfers were unauthorized and therefore could constitute embezzlement, theft, fraud or another crime.
Salame also named names: only Sam Bankman-Fried, Nishad Singh and Gary Wang could have done so. FTX filed for bankruptcy on November 11 in the United States.
Yesterday, Bankman-Fried was charged with money laundering, wire fraud, securities fraud, commodity fraud and various conspiracy charges.
