Top FTX Group Executive Tipped Off Bahamas Authorities About Commingling of Funds in November
Former CEO Sam Bankman-Fried has said he didn't know of any comingling of funds between his companies.
A top executive of the FTX group of companies told Bahamas police that funds were commingled between the crypto exchange and its sister trading firm Alameda Research as early as Nov. 9, court documents show.
Ryan Salame, the co-chief executive of FTX's Bahamas entity, called FTX Digital Markets, told the Bahamas Securities Commission on Nov. 9 that "clients’ assets which may have been held with FTX Digital were transferred to Alameda Research," according to a letter to the Bahamas Police Commissioner disclosed this week. This would constitute "misappropriation, theft, fraud or some other crime," Christina Rolle, executive director at Securities Commission of The Bahamas wrote to the Commissioner.
Salame said there were only three people who could have transferred the funds: former CEO Sam Bankman-Fried, Nishad Singh and Gary Wang.
The Financial Times reported the story earlier.
The commingling of funds between Bankman-Fried's companies is a key issue in the FTX saga. Bankman-Fried, the company's deposed and arrested CEO, has said that he didn't "knowingly commingle funds." The U.S. Securities and Exchange Commission has charged Bankman-Fried with fraud, alleging that he created a special line of credit for Alameda Research, effectively giving the firm access to FTX customer funds.
The crypto exchange filed for bankruptcy on Nov. 11, after a CoinDesk article about Alameda Research's balance sheet triggered a run on FTX deposits.
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