Home Latest10News Ex-FTX exec Salame alerted Bahamas regulators to SBF opportunity fraud

Ex-FTX exec Salame alerted Bahamas regulators to SBF opportunity fraud

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FTX founder Sam Bankman-Fried (2nd L) is led absent handcuffed by officers of the Royal Bahamas Law enforcement Power in Nassau, Bahamas on December 13, 2022. 

Mario Duncanson | AFP | Getty Photos

Days before FTX’s bankruptcy submitting final thirty day period, co-CEO Ryan Salame told Bahamian authorities that founder Sam Bankman-Fried might have committed fraud by sending customer dollars from the crypto trade to his other organization, Alameda Study.

In accordance to a submitting on Wednesday tied to FTX’s bankruptcy proceedings, Salame disclosed “possible mishandling of clients’ assets” by Bankman-Fried. The letter integrated in the filing was dated Nov. 9, and was despatched from the Securities Fee of the Bahamas to the commissioner of police. FTX declared individual bankruptcy on Nov. 11.

The disclosure on Wednesday marks the initially community acknowledgement of an insider turning on Bankman-Fried, who was arrested in the Bahamas on Monday just after the U.S. Lawyer for the Southern District of New York shared a sealed indictment with the Bahamian govt. The indictment, unsealed on Tuesday, billed Bankman-Fried with 8 prison counts related to fraud, money laundering and improper use of buyer funds.

Salame instructed regulators that only three men and women at FTX — Bankman-Fried, Nishad Singh, and Gary Wang — experienced the kind of access and authority to engineer the quite possibly fraudulent transfers to Alameda, a hedge fund and investing business. Salame said he advised Bankman-Fried and Alameda executives that the achievable mishandling of consumer cash, which have been commingled with Alameda, was contrary to “normal company governance.”

Salame’s LinkedIn profile says he’s primarily based in the Bahamas. He also has multiple residences in the U.S., with houses in Massachusetts, Washington, D.C., and New Jersey. He experienced departed the Bahamas for the U.S. by Nov. 9, according to the letter.

Like Bankman-Fried, Salame was a significant political donor, donating $20 million to Republican triggers.

CNBC’s Brian Schwartz contributed to this report.

Sam Bankman-Fried in jail in the Bahamas till February as Senate FTX hearing kicks off



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