FTX internal executive blew the whistle: User funds were transferred to Alameda accounts in early November.
SBF often cites "non-interference in Alameda Research affairs" as the reason, emphasizing that he only became aware of the massive funding gap at Alameda after the fact. However, the co-CEO of FTX Digital Markets had already reported to the Panamanian authorities on 11/9, and the three-member executive committee with authority had transferred funds to Alameda.
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Top Executives Warn Authorities to Guard Against Asset Misappropriation
According to legal documents from the Bahamas, Christina Rolle, Executive Director of the Securities Commission of the Bahamas, received a report from Ryan Salame, Co-CEO of FTX Digital Markets FTX Bahamas entity, on 11/9.
Ryan Salame indicated that funds from FTX Digital may have been transferred by executives to an Alameda account. Christina Rolle subsequently wrote to the Financial Crimes Investigation Branch of the Royal Bahamas Police Force requesting an urgent investigation into FTX Digital.
Ryan Salame also disclosed to the securities commission that only three executives have access to the funds' passwords:
SBF
Chief Technology Officer Gary Wang
Director of Engineering Nishad Singh
Previous internal employee disclosures revealed that the core executives also include Caroline Ellkison, CEO of Alameda.
If the Bahamas Did Not Lie
According to information from the past month:
When withdrawals were temporarily suspended at the beginning of the FTX incident, FTX tweeted on 11/11 that they had started assisting the Bahamas with withdrawals in accordance with the country's regulatory requirements.
The Securities Commission of the Bahamas stated on 11/13: "There was no indication, authorization, or suggestion that FTX Digital Markets Ltd. prioritize withdrawals for Bahamian users. The Commission does not permit FTX or any investor or user to receive special treatment."
Subsequently, the Securities Commission of the Bahamas acknowledged on 11/18 that all digital assets of FTX Digital Markets Ltd. had been transferred to a digital wallet controlled by the Commission, which would now act as custodian of the digital assets and collect custodial fees, administrative fees, etc.
The Bahamas taking control of FTX Digital's assets may refer to subsequent management. Besides, in an interview with Tiffany Fong, SBF confirmed that FTX's initial tweet was a lie, as he admitted that prioritizing withdrawals for Bahamian users was his decision due to his presence in the Bahamas and fear of local backlash.