FTX’s failure is just one part of a long, contagious crypto winter

Ryan Salame sang like a canary.

Salame, the former co-CEO of FTX, warned Bahamian regulators on Nov. 9 that FTX was transferring funds to Alameda Research to “cover financial losses,” according to court filings.

The regulators wrote in the filing:

The Commission understood that Mr. Salame was advising that the transfer of client assets in this manner was contrary to the normal corporate governance and operations of FTX Digital. Simply put, that such transfers were not allowed and therefore could constitute embezzlement, theft, fraud or any other crime.

Salame also named names: only Sam Bankman-Fried, Nishad Singh and Gary Wang could have done it. FTX filed for bankruptcy in the US on November 11.

Yesterday, Bankman-Fried was charged with money laundering, banking fraud, securities fraud, commodities fraud and various conspiracy charges.

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