Top SBF Associate Revealed: FTX Takes Client’s Money To Cover Alameda’s Loss

Top SBF fortification Ryan Salame told Bahamas regulators that in the days leading up to the FTX collapse, SBF likely moved client funds to Alameda to cover the losses.

According to the Financial Times, Ryan Salame, co-chief executive of FTX’s Bahamas operating entity, informed the country’s securities commission on November 9 that FTX customer funds had been used to cover losses at Alameda Research, according to Bahamian court records.

Salame identified Bankman-Fried and two other FTX executives as potentially responsible, an allegation that led to a referral to Bahamas police and ultimately the appointment of a liquidator.

He also told SCB that only three people have the necessary access to transfer client assets to Alameda: Former FTX CEO Sam Bankman-Fried, FTX co-founder Zixiao “Gary” Wang and engineer Nishad Singh of FTX. The allegation prompted SCB chief executive Christina Rolle to contact the commissioner of the Royal Bahamas Police Force to request an investigation.

The ongoing allegations that led to the arrest between the SBF on December 12 appear to have been the result of cooperation with prosecutors from several business partners.

There were also rumors earlier that Alameda CEO Caroline Ellison was cooperating with investigative agencies to bring out evidence against Sam.

After his arrest, Sam applied for bail on the grounds of “depression” and “insomnia”, but it was rejected by the court, saying he was in danger of absconding.

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