According to court documents related to the FTX bankruptcy, two days prior to the firm filing for Chapter 11 bankruptcy protection, FTX co-founder Ryan Salame allegedly informed law enforcement in the Bahamas that Sam Bankman-Fried (SBF) had sent funds from clients to Alameda Research. A letter written by Salame and submitted to the Commissioner of Police for the Bahamas contained a detailed description of “potential mishandling of client assets” by SBF.
Court Papers Point to FTX Co-Founder Accusing Bankman-Fried
Documents related to the FTX bankruptcy provide details on how the former FTX executive may have revealed the purported fraudulent activity of Sam Bankman-Fried (SBF) two days before the cryptocurrency company filed for Chapter 11.
Salame’s letter allegedly explained to the authorities in the Bahamas how SBF made transfers that needed to be explained. The date of the letter was November 9. Salame detailed that customer funds had been used for payment of Alameda Research’s “financial losses.”
Court documents show that the letter first went to the Bahamas Securities and Exchange Commission and later to the Commissioner of Police in the Bahamas. According to reports, the CEO of the company, Christina Rolle, was the recipient of the letter.
Salame allegedly explained why FTX was so successful and the only three individuals who had full access to the funds were SBF, Gary Wang and Nishad Singh of Alameda.
Additionally, court documents indicate that FTX lawyers were charged with the offense of ordering SBF and Gary Wang to mint millions of tokens. There are also some allegations that Bahamian citizens were given preferential treatment during the FTX crash.
There are “alleged $100 million in cryptocurrency withdrawals that occurred between November 10, 2022 and November 11, 2022 from 1,500 people.” It is believed that the funds used for the withdrawals were from FTX Digital clients.
Salame also had a relationship with the Bahamian government after he traveled to Ohio to visit 80 Acres Farms with Prime Minister (PM) Philip Davis and officials from other islands. Additionally, Salame is said to have donated $22 million to Republican politicians according to opensecrets.org data for the 2022 midterm elections.
Both PM Davis and Salame were involved in ventures with 80 Acres and its partner Eeden Acres. Reports show that 80 Acres Farms received funding of approximately $25 million from FTX Ventures.
As for SBF and the Bahamian government, according to officials from both, the allegations are “inflammatory and false.” Bahamian authorities claim that the government only discussed “insolvency proceedings in the Bahamas” prior to the Chapter 11 filing.
What do you think of court documents linking FTX’s co-founder Ryan Salame to SBF before the bankruptcy filing? Let us know your thoughts on the matter in the comments below.