One of Sam Bankman-Fried’s top lieutenants told Bahamian authorities that customer funds from the firm were used to plug holes in the balance sheet of his investment fund, Alameda Research.

In a Nov. 9 call with Bahamian regulators, FTX Digital Markets co-CEO Ryan Salame told Bahamas Securities Commission Executive Director Christina R. Rolle that client assets possibly held by FTX were transferred to Alameda Research to cover the hedge fund's financial losses.

The transfer of customer assets was “contrary to normal corporate governance and operations at FTX Digital,” Rolle wrote in a Nov. 11 court document filed to the Supreme Court of the Bahamas, seeking an emergency intervention for the regulator to seize control of the company’s remaining assets. “Put simply, that such transfers were not allowed or consented to by their clients.”