FTX co-CEO Ryan Salame reported to Bahamian regulators on Nov. 9 that the exchange was transferring customer funds to Alameda Research, according to a court hearing on Dec. 14. filing.
Salame told the Bahamas Securities Commission (SCB) that only three people could make such transfers. These people include FTX founder Sam Bankman-Fried, his co-founder Zixiao “Gary” Wang, and his director of engineering Nishad Singh.
“The Commission understands that Mr. Salameh has advised that transferring client assets in this manner is contrary to the normal corporate governance and operations of FTX Digital. otherwise, such transfers are not authorized and may constitute embezzlement, theft, fraud, or other crimes.”
Financial regulators acted quickly on information and ordered a freeze on FTX assets on November 10th. The oversight body has also suspended the exchange’s license and appointed an interim liquidator to protect the company’s assets.
Salameh is now in Washington, D.C., according to documents
Meanwhile, SBF was arrested by Bahamian authorities at the request of the US government. He was denied bail because he was considered a flight risk.
