FTX Insider Turns on Sam Bankman-Fried

According to a new filing in the bankruptcy case of cryptocurrency exchange FTX, it was an insider who spilled the beans on the company’s founder, Sam Bankman-Fried.

CNBC reported that Wednesday’s filing contained a letter from the Securities Commission of the Bahamas to the commissioner of police saying it had been informed of potential fraudulent activity within FTX by the company’s co-CEO, Ryan Salame.

Salame warned the commission about the “possible mishandling of clients’ assets” by Bankman-Fried, the report said.

The letter, dated Nov. 9, was sent one day after the crucial midterm elections in the U.S. and just two days before FTX declared bankruptcy.

Salame told authorities the possible fraud involved the illegal transfer of funds between FTX and sister company Alameda Research.

As CNBC reported, “Salame told regulators that only three individuals at FTX — Bankman-Fried, Nishad Singh and Gary Wang — had the kind of access and authority to engineer the possibly fraudulent transfers to Alameda, a hedge fund and trading firm.

“Commissioners understood Salame to have said the fund movements and commingling allegedly authorized by Bankman-Fried were contrary to ‘normal corporate governance’ practices.”

After contacting the Securities Commission, Salame returned to the U.S., where he owns homes in Massachusetts, Washington, D.C., and New Jersey, the report said.

Additionally, CNBC noted that Salame had donated $20 million to the GOP. Meanwhile, Bankman-Fried is the second-largest donor to Democrats, having given about