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

The president of the Commodity Futures Trading Commission (CFTC) has revealed that helium and his squad met with Sam Bankman-Fried and different FTX executives 10 times earlier the crypto speech filed for bankruptcy. The regulator sees the FTX illness arsenic “a classical tally based connected liquidity crunch.”

CFTC’s Meetings With FTX and Sam Bankman-Fried

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

Behnam told senators that helium and a fig of high-level CFTC officials met with erstwhile FTX CEO Sam Bankman-Fried (SBF) 10 times implicit the past 14 months. The meetings were centered astir FTX’s exertion to amend the clearinghouse licence for Ledgerx, a CFTC-regulated entity that FTX bought past year. FTX and astir 130 affiliated companies filed for bankruptcy connected Nov. 11 and Bankman-Fried stepped down arsenic the CEO. Ledgerx was excluded from the bankruptcy filing.

The CFTC president said:

My squad and I met with Mr. Bankman-Fried and his team. Over the past 14 months, we met 10 times successful the CFTC bureau astatine their petition — each successful narration to this clearinghouse application.

Nine meetings were successful Washington, D.C., and 1 was astatine a league successful Florida, the CFTC president noted. He further clarified that determination were besides telephone calls, substance messages, and emails exchanged betwixt CFTC officials and FTX relating to the crypto exchange’s “dogged tendency to get this exertion approved.”

The CFTC main emphasized: “My attack to the exertion fixed the issues and the beardown feelings was that I needed it to beryllium transparent and unfastened with him and FTX … truthful determination were a fig of emails and messages backmost and distant each astir the exertion and the presumption of the application.”

While Behnam did not callback however galore times Bankman-Fried oregon different FTX executives met with CFTC staff, helium said that “they were successful the gathering rather a bit” to sermon the details of their clearinghouse application.

The CFTC president added: “There were very, precise beardown feelings astir this application. And I felt I needed to beryllium engaged arsenic the president of the bureau that met straight with FTX and Mr. Bankman-Fried.”

Commenting connected the FTX collapse, Behnam said: “It seems similar a classical liquidity crunch.” He concluded:

It looks similar a classical tally based connected liquidity crunch.

At the clip FTX filed for bankruptcy, the CFTC was inactive reviewing its exertion and Behnam said nary determination had been made.

Bankman-Fried besides met with officials astatine the U.S. Securities and Exchange Commission (SEC) respective times earlier FTX filed for bankruptcy.

What bash you deliberation astir the CFTC gathering with Bankman-Fried 10 times earlier the speech filed for bankruptcy? Let america cognize successful the comments conception below.

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