Bahamian authorities tipped off about money sent to Alameda

Ryan Salame is said to have tipped off the Bahamian authorities about the transfers of client funds from the now bankrupt crypto exchange FTX to Alameda Research.

Bahamian authorities tipped off

The crypto world continues to struggle with the consequences of the collapse of the crypto exchange FTX. However, documents obtained by the Wall Street Journal on Wednesday revealed that FTX’s Digital Chairman Ryan Salame has tipped off authorities in the Bahamas. He tipped off that FTX had used client money to cover losses at Alameda Research.

Christina Rolle, the Executive Director of the Securities Commission of the Bahamas, sent a request to investigate to the Commissioner of the Royal Bahamas Police Force on November 9, 2022. He did this on the basis of the information obtained from Salame. Just 2 days later, FTX filed for bankruptcy protection.

Salame had told officials that customer assets that may have been held with FTX Digital were transferred to Alameda Research. In addition, he said that such transfers were not allowed. These transfers can lead to theft, fraud or other similar crimes.

In addition, Salame also told authorities that the only people able to transfer client assets to Alameda were CEO Sam Bankman-Fried, chief technical officer Nishad Singh, and FTX and Alameda co-founder Gary Wang.

Arrest of Bankman-Fried

Sam Bankman-Fried (SBF) was arrested Monday in the Bahamas and is currently fighting extradition to the United States. SBF is charged with conspiracy, fraud and money laundering. He was denied bail.

Authorities in the Bahamas and the United States have been battling for jurisdiction over the FTX case. With US officials and newly installed FTX CEO John Ray accusing Bahamian officials of blocking access to necessary information.

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Bahamian regulators, for their part, say Ray’s comments do not seem to be about facts. They conclude that these comments are only intended to “make headlines”.

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