Ryan Salame sang like a canary.
Salame, FTX’s former co-CEO, warned Bahamian regulators on Nov. 9 that FTX transferred funds to Alameda Research to “cover financial losses,” according to court filings.
The regulators wrote in the filing:
The Commission understood Mr. Salame as advising that the transfer of clients’ assets in this manner was contrary to the normal corporate governance and operations of FTX Digital. Put simply, that such transfers were not allowed and therefore may constitute misappropriation, theft, fraud or some other crime.
Salame named names, too: only Sam Bankman-Fried, Nishad Singh, and Gary Wang could have done it. FTX filed for bankruptcy on Nov. 11 in the US.
Yesterday, Bankman-Fried was charged with money laundering, wire fraud, securities fraud, commodities fraud, and some assorted conspiracy charges.