Fun

US Regulator CFTC Met With Sam Bankman-Fried 10 Times Before Crypto Exchange FTX Collapsed

News Feed - 2022-12-03 07:12:55

US Regulator CFTC Met With Sam Bankman-Fried 10 Times Before Crypto Exchange FTX Collapsed


The chairman of the Commodity Futures Trading Commission (CFTC) has revealed that he and his team met with Sam Bankman-Fried and other FTX executives 10 times before the crypto exchange filed for bankruptcy. The regulator sees the FTX collapse as “a classic run based on liquidity crunch.” CFTC’s Meetings With FTX and Sam Bankman-Fried


The chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, shared details of his agency’s meetings with executives of collapsed crypto exchange FTX before the Senate Committee on Agriculture, Nutrition, and Forestry on Thursday.


Behnam told senators that he and a number of high-level CFTC officials met with former FTX CEO Sam Bankman-Fried (SBF) 10 times over the past 14 months. The meetings were centered around FTX’s application to amend the clearinghouse license for Ledgerx, a CFTC-regulated entity that FTX bought last year. FTX and about 130 affiliated companies filed for bankruptcy on Nov. 11 and Bankman-Fried stepped down as the CEO. Ledgerx was excluded from the bankruptcy filing.


The CFTC chairman said: My team and I met with Mr. Bankman-Fried and his team. Over the past 14 months, we met 10 times in the CFTC office at their request — all in relation to this clearinghouse application.


Nine meetings were in Washington, D.C., and one was at a conference in Florida, the CFTC chairman noted. He further clarified that there were also phone calls, text messages, and emails exchanged between CFTC officials and FTX relating to the crypto exchange’s “dogged desire to get this application approved.”


The CFTC chief emphasized: “My approach to the application given the issues and the strong feelings was that I needed it to be transparent and open with him and FTX … so there were a number of emails and messages back and forth all about the application and the status of the application.”


While Behnam did not recall how many times Bankman-Fried or other FTX executives met with CFTC staff, he said that “they were in the building quite a bit” to discuss the details of their clearinghouse application.


The CFTC chairman added: “There were very, very strong feelings about this application. And I felt I needed to be engaged as the chairman of the agency that met directly with FTX and Mr. Bankman-Fried.”


Commenting on the FTX collapse, Behnam said: “It seems like a classic liquidity crunch.” He concluded: It looks like a classic run based on liquidity crunch.


At the time FTX filed for bankruptcy, the CFTC was still reviewing its application and Behnam said no decision had been made.


Bankman-Fried also met with officials at the U.S. Securities and Exchange Commission (SEC) several times before FTX filed for bankruptcy. Tags in this story CFTC, CFTC SEC FTX, ftx, Rostin Behnam, Rostin Behnam bitcoin, Rostin Behnam crypto, Rostin Behnam cryptocurrency, Rostin Behnam FTX, Rostin Behnam Ledgerx


What do you think about the CFTC meeting with Bankman-Fried 10 times before the exchange filed for bankruptcy? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Kevin O"Leary, Bill Ackman Slammed for Defending Sam Bankman-Fried — "I Think SBF Is Telling the Truth" EXCHANGES | 23 hours ago Binance Acquires Licensed Japanese Crypto Exchange — Prepares to Enter Japan as Regulated Entity EXCHANGES | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleWhile the FTX Co-Founder Claims He ‘Wasn’t Running Alameda,’ SBF Is Asked Why He Threw Caroline Ellison ‘Under the Bus’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse

News Feed

Ethereum Holds Above MVRV Band Low – A Final Dip Before Recovery?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Kevin O’Leary on SEC v Ripple Lawsuit Over XRP: ‘I Have Zero Interest in Investing in Litigation Against SEC’
Kevin O"Leary on SEC v Ripple Lawsuit Over XRP: "I Have Zero Interest in Investing in Litigation Against SEC" Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says he has z
Oldest US Bank BNY Mellon to Provide Grayscale Bitcoin Trust With Asset Servicing and ETF Services
Oldest US Bank BNY Mellon to Provide Grayscale Bitcoin Trust With Asset Servicing and ETF Services Grayscale Investments has engaged the oldest bank in the U.S.,
Bitcoin Revolution: Wanna Earn $1,000 a Day? Government Warns About This Scam
Bitcoin Revolution: Wanna Earn $1,000 a Day? Government Warns About This Scam A cryptocurrency investment scheme called Bitcoin Revolution has recently garnered interest worldwid
GensoKishi Online “Meta World” Is Set to Transform Blockchain Gaming With Innovative Metaverse
GensoKishi Online "Meta World" Is Set to Transform Blockchain Gaming With Innovative Metaverse sponsored Metaverse is the trending concept in the blockchain industry due to its mass
GMT Token Pre-sale is Live Now
GMT Token Pre-sale is Live Now PRESS RELEASE. GMT has started the pre-sale of the GMT token. In total 100,000 GMT will be sold in this phase at the price of 1GMT
Central Bank of Chile Studies Issuance of a Digital Currency
Central Bank of Chile Studies Issuance of a Digital Currency The Central Bank of Chile revealed it is studying how to issue a national digital currency, the digital peso. The bank
Derek Andersen2 hours agoU.S. House committee chairs, Blockchain Association turn up heat on SEC head GenslerThree House chairs sent a letter regarding recordkeeping and FOIA, and the industry advocacy group suggested We
Zhiyuan Sun16 hours agoBreaking: Coinbase to suspend USDT trading for Canadian usersUsers will still be able to deposit and withdraw USDT, DAI and RAI after the deadline, but trading will be suspended.10171 Total views27
Japanese Pop Star Talks About Her Facet as Crypto Investor — J-Pop Band Releases NFT Trading Cards
Japanese Pop Star Talks About Her Facet as Crypto Investor — J-Pop Band Releases NFT Trading Cards Asian showbiz stars have been actively speaking about crypto
Average daily active unique wallets reach 7M — DappRadar
Tristan Greene3 hours agoAverage daily active unique wallets reach 7M — DappRadarAccording to the report, DApp activity is up 77% over Q4 2023.534 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCo
Tristan Greene7 hours agoNasdaq receives SEC approval for AI-based trade ordersThe artificial intelligence-based order type could make stock trading even more efficient.3772 Total views11 Total sharesListen to article 0: