FTX founder Sam Bankman-Fried (second L) is led away handcuffed by means of officials of the Royal Bahamas Police Pressure in Nassau, Bahamas on December 13, 2022.
Mario Duncanson | AFP | Getty Photographs
Days ahead of FTX’s chapter submitting final month, co-CEO Ryan Salame instructed Bahamian government that founder Sam Bankman-Fried will have dedicated fraud by means of sending buyer cash from the crypto trade to his different company, Alameda Analysis.
Consistent with a submitting on Wednesday tied to FTX’s chapter lawsuits, Salame disclosed “conceivable mishandling of shoppers’ belongings” by means of Bankman-Fried. The letter integrated within the submitting was once dated Nov. 9, and was once despatched from the Securities Fee of the Bahamas to the commissioner of police. FTX declared chapter on Nov. 11.
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The disclosure on Wednesday marks the primary public acknowledgement of an insider turning on Bankman-Fried, who was once arrested within the Bahamas on Monday after the U.S. Legal professional for the Southern District of New York shared a sealed indictment with the Bahamian govt. The indictment, unsealed on Tuesday, charged Bankman-Fried with 8 felony counts associated with fraud, cash laundering and unsuitable use of purchaser price range.
Salame instructed regulators that simplest 3 people at FTX — Bankman-Fried, Nishad Singh and Gary Wang — had the type of get admission to and authority to engineer the in all probability fraudulent transfers to Alameda, a hedge fund and buying and selling company. Salame mentioned he prompt Bankman-Fried and Alameda executives that the conceivable mishandling of purchaser price range, that have been commingled with Alameda, was once opposite to “standard company governance.”
Salame’s LinkedIn profile says he is primarily based within the Bahamas. He additionally has a couple of flats within the U.S., with houses in Massachusetts, Washington, D.C., and New Jersey. He had departed the Bahamas for the U.S. by means of Nov. 9, in line with the letter.
Like Bankman-Fried, Salame was once a vital political donor, donating $20 million to Republican reasons.
— CNBC’s Brian Schwartz contributed to this file.