On November 9, the former co-CEO of FTX Digital Markets informed (SCB) that FTX was transferring customer cash to its sister trading company Alameda Research.
Salame further informed that to move client assets from the exchange to the hedge fund. Only three individuals—SBF, co-founder Zixiao Gray, and Nishad Singh—had access.
The documents submitted to the Bahamian court yesterday disclosed these specifics (December 14).
Executive director of the SCB requested an investigation from the chief Royal Bahamas Police Force in response to Salame’s accusation. Only two days later, the exchange was compelled to shut down.
The first reported case of a senior official from an FTX company informing a regional regulatory agency about probable fraud in crypto.
The Bahamian police detained SBF on Monday (December 12), anticipating potential extradition to the U.S. He has been accused of eight crimes, including conspiracy to commit money laundering. Wire fraud, by the Department of Justice.
As today’s charges make clear, this was not a case of mismanagement or poor oversight, but of intentional fraud, plain and simple,” U.S. Attorney Damian Williams said. Prosecutors have called his case “one of the biggest financial frauds in American history.
FTX formerly ranked third among cryptocurrency exchanges, with a market cap of $32 billion. It was funded by numerous individuals, including some of its top investors, such as Sequoia Capital. Beginning in early November, customer withdrawal efforts caused the exchange’s functionality to crash in less than a week.
Related Reading | John Ray III, New CEO Of FTX, Testifies Before House Committee
Many individuals worry that many other FTX officials may be working with law enforcement since SBF has been charged thus far.