Chairman of the Commodity Futures Trading Commission (CFTC) He and his team revealed they met with Sam Bankman-Fried and other FTX executives 10 times before the crypto exchange filed for bankruptcy. Regulators see FTX’s collapse as “a classic move based on a liquidity crunch.”
CFTC meeting with FTX and Sam Bankman-Fried
Exchange FTX in front of the Senate Agriculture, Nutrition and Forestry Committee on Thursday, which shared details of a meeting with currency officials.
Behnam told senators he and many of his CFTC officials have met former FTX CEO Sam Bankman-Fried (SBF) 10 times in the past 14 months. . The meeting centered around FTX’s application to amend the clearinghouse license of Ledgerx, a CFTC-regulated entity that FTX purchased last year. FTX and about 130 affiliates filed for bankruptcy on his November 11th, Bankman-Fried stepped down as his CEO. Ledgerx has been cleared from bankruptcy filings.
The CFTC chair said:
My team and I met with his Bankman-Fried and his team. In the last 14 months, he met 10 times at the CFTC office upon request, all in connection with this Clearinghouse application.
The CFTC chair noted that he had nine meetings in Washington, D.C. and one in Florida. He added that calls, texts, and emails were exchanged between CFTC officials and his FTX in connection with the crypto exchange’s “persistent desire to have this application approved.” It revealed that.
The CFTC Chief stressed that: Publish everything about your application and application status. “
Behnam can’t remember how many times Bankman-Fried and other of his FTX executives met with his CFTC staff, but to discuss the details of the clearinghouse application,” they said. I was in the building quite a bit,” he said.
The CFTC Chair added: And FTX and he felt the need to be involved as chairman of the agency who met Mr. Bankman-Fried in person.
Regarding the collapse of FTX, Behnam said: He concluded:
seems to be a classic move based on a liquidity crunch.
At the time FTX filed for bankruptcy, the CFTC was still considering the filing, and Behnam said no decision had been made.
Bankman-Fried also met several times with US Securities and Exchange Commission (SEC) officials before FTX filed for bankruptcy.
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