A December 14th court filing revealed that the other Chief Executive Officer (CEO) of the now-bankrupt FTX Derivatives Exchange Ryan Salame is the man behind Sam Bankman-Fried’s woes. According to the filed document, co-CEO Salame told the Bahamian regulators that there was an underground transfer of customers’ funds from FTX to its sister trading firm Alameda Research.
“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,” the filing outlined
Furthermore, he informed the United States Securities and Exchange Commission (SEC) that only three executives were equipped enough to authorize such transactions. The three people who listed are the disgraced CEO Bankman-Fried, cryptocurrency billionaire and co-founder of FTX Zixiao “Gary” Wang, and Nishad Singh the director of engineering.
The information reached regulators in the Bahamas two days before the exchange filed for bankruptcy in the United States.
This information instigated the investigations and seizure of Bankman-Fried and FTX’s assets in the second week of November. Additionally, FTX’s operation in the Bahamas was shut down and a provisional liquidator was appointed to oversee operations as well as the preservation of the company’s assets.
SBF Sits in Bahamian Jail
Currently, SBF has been arrested and is being held at a Bahamian jail even though the order came from the U.S. government.
Some of the charges against him are wire and securities fraud, conspiracy to commit wire and securities fraud, including money laundering. Both the U.S. and Bahamas share the same sentiment “in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law.”
For now, Bankman-Fried is awaiting potential extradition to the United States.
So far, Salame is the only FTX employee who has successfully contributed to the indictment of SBF. Since the implosion of the exchange, this is the first time Salame is publicly making a related statement. His last public discussion was with Yi He, Binance co-founder, where she tried to explain why Binance decided to sell its FTX token (FTT) holdings.