FTX’s failure is only one half if a protracted, contagious crypto winter

Ryan Salame sang like a canary.

Salame, FTX’s former co-CEO, warned Bahamian regulators on Nov. 9 that FTX transferred funds to Alameda Analysis to “cowl monetary losses,” in line with court docket filings.

The regulators wrote within the submitting:

The Fee understood Mr. Salame as advising that the switch of purchasers’ property on this method was opposite to the traditional company governance and operations of FTX Digital. Put merely, that such transfers weren’t allowed and subsequently could represent misappropriation, theft, fraud or another crime. 

Salame named names, too: solely Sam Bankman-Fried, Nishad Singh, and Gary Wang may have finished it. FTX filed for chapter on Nov. 11 within the US.

Yesterday, Bankman-Fried was charged with cash laundering, wire fraud, securities fraud, commodities fraud, and a few assorted conspiracy fees.