FTX digital executive warned of client fund transfers to Alameda, documents show

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3 min read . Updated: 15 Dec 2022, 07:14 PM IST Jonathan Randles, The Wall Street Journal

FTX founder Sam Bankman-Fried is being escorted out of the Magistrate Court building after his arrest, in Nassau, Bahamas (Photo: Reuterw) — FTX founder Sam Bankman-Fried is being escorted out of the Magistrate Court building after his arrest, in Nassau, Bahamas (Photo: Reuterw)

The Bahamas securities authority sought a probe into the FTX affiliate after the subsidiary’s chairman warned of commingled funds with Alameda, records made public Wednesday show

A top executive of FTX’s Bahamas subsidiary warned that country’s securities authority days before the company filed for bankruptcy Nov. 11 of customer fund transfers to Alameda Research, a cryptocurrency trading firm tied to FTX, according to documents made public Wednesday. The warning prompted the regulator to immediately seek a criminal investigation, according to the documents.