{"id":14682,"date":"2022-11-21T14:34:31","date_gmt":"2022-11-21T14:34:31","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cme-groups-ceo-called-ftxs-sam-bankman-fried-an-absolute-fraud-when-they-met-in-march-bitcoin-news\/"},"modified":"2022-11-21T14:34:31","modified_gmt":"2022-11-21T14:34:31","slug":"cme-groups-ceo-called-ftxs-sam-bankman-fried-an-absolute-fraud-when-they-met-in-march-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cme-groups-ceo-called-ftxs-sam-bankman-fried-an-absolute-fraud-when-they-met-in-march-bitcoin-news\/","title":{"rendered":"CME Group’s CEO Called FTX’s Sam Bankman-Fried an ‘Absolute Fraud’ When They Met in March \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to the CEO of CME Group, Terry Duffy, the executive met with former FTX CEO Sam Bankman-Fried (SBF) last March at a conference, and Duffy ended up calling the FTX frontman a \u201cfraud.\u201d When Duffy sat down with SBF, the former FTX executive said his end goal was to compete with CME Group.<\/strong><\/p>\n

Last March CME Group\u2019s Terry Duffy Called SBF a \u2018Fraud\u2019 and Says He Was the Only One Besides ICE to Call \u2018BS on These Clowns\u2019<\/h2>\n

Terry Duffy, the chief executive officer of CME Group, the world\u2019s largest derivatives exchange, recently sat down with the hosts of the podcast \u201cOn The Tape\u201d and discussed the recent FTX collapse. Duffy explained<\/a> that last March he sat down with the former FTX CEO, Sam Bankman-Fried (SBF), and they discussed competition. Duffy asked the former FTX executive what his end goal was and SBF replied \u201cwell, I want to compete with you.\u201d Duffy said he replied \u201cGreat, I\u2019m all for competition, what do you want to do?\u201d<\/p>\n

Duffy explained that SBF said he wanted to compete with CME in crypto, so Duffy said: \u201cI\u2019ll give you one better, how about I give you my crypto franchises worth $30 million and we\u2019ll go from there?\u201d SBF replied to Duffy by asking the CME Group CEO what he wanted in exchange for the deal. \u201cYou know what I want,\u201d Duffy said to SBF. \u201cLet me be your risk manager, I\u2019ll clear it to make sure it\u2019s done properly.\u201d SBF responded that the CME Group CEO would not deploy his model, and Duffy said \u201cyour model is crap.\u201d Duffy added:<\/p>\n

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Why would I deploy a model that\u2019s going to introduce risk to the system? Of course I\u2019m not going to deploy your model.<\/p>\n<\/blockquote>\n

Duffy then said that SBF turned him down flat out and the CME Group CEO told the former FTX CEO: \u201cYou know what? You\u2019re a fraud. You\u2019re an absolute fraud. You are supposedly worth $26 billion and you\u2019re an altruist. If you are an altruist at $26 billion, how come there\u2019s not a $10 billion donation going to someone right at this moment in time?\u201d The CME Group CEO continued:<\/p>\n

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How \u2019bout a $15 billion donation? You know what? My net worth doesn\u2019t start with any BS. I\u2019ll give you three-to-one [odds] that I have more money than you. I tell you what, I\u2019ll give you four-to-one [odds] that I got more money in my right pocket than your net worth. You\u2019re a fraud and I\u2019m going to make sure we get this out there.<\/p>\n<\/blockquote>\n

Duffy Stressed That FTX\u2019s Idea Was \u2018Deficient and Poses Significant Risk to Market Stability,\u2019 Elon Musk Says SBF Set off His BS Detector<\/h2>\n

After meeting with SBF, Duffy said he went to speak in front of Congress, right around the time when FTX was looking for approval from the U.S. Commodity Futures Trading Commission (CFTC) to become a derivatives clearing organization. Duffy noted that he was \u201cberated\u201d during the congressional hearing but he would not back down. \u201cI said you could lose 85% to 95% of your value overnight and [SBF] will not commit to keeping this just crypto,\u201d Duffy remarked on the podcast. \u201cHe wants it deployed across all asset classes\u201d and Duffy further stressed that SBF\u2019s model would lead to a \u201cbiblical disaster.\u201d<\/p>\n

\u201cFTX\u2019s proposal is glaringly deficient and poses [a] significant risk to market stability and market participants,\u201d Duffy wrote<\/a> about the subject in mid-May 2022.<\/p>\n

During the first week of October, reports said<\/a> that CME Group was looking to register as a direct futures commission merchant (FCM). FTX\u2019s application with the CFTC was still waiting for approval but now the application has been scrapped. The 64-year-old Duffy recently sat down with Bloomberg after the FTX collapse and told<\/a> the news publication that he won\u2019t stop cryptocurrency futures trading just because of \u201cone bad actor.\u201d<\/p>\n

\u201cI\u2019m not prepared to say I\u2019d delist it,\u201d Duffy said. \u201cWe\u2019ve been at the cutting edge of innovative products, but what we don\u2019t do is do it in a reckless manner,\u201d the CME Group executive added. During the interview with the hosts of the podcast \u201cOn The Tape,\u201d Duffy further called FTX executives a bunch of clowns. \u201cSo I am upset by this (the FTX situation),\u201d Duffy remarked. \u201cBut I am a measured upset. I\u2019m a very measured upset, because nobody else was calling BS on these clowns but me. My friends at the Intercontinental Exchange (ICE) are the only other exchange that said \u2018we do not like this as well.\u2019\u201d<\/p>\n

In addition to CME Group\u2019s Duffy, Tesla and Twitter executive Elon Musk told the public that SBF set off his BS detector. After someone shared a conversation between Musk and an FTX representative, in the conversation Musk asked: \u201cDoes Sam actually have $3B liquid?\u201d When Musk saw someone share the text conversation on Twitter he verified that the text was real. \u201cAccurate. He set off my BS detector, which is why I did not think he had $3B,\u201d Musk tweeted in response.<\/p>\n

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\nTags in this story
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absolute fraud<\/a>, CFTC<\/a>, CFTC application<\/a>, clowns<\/a>, CME<\/a>, CME CEO<\/a>, CME Group<\/a>, CME Group CEO<\/a>, CME Terry Duffy<\/a>, Elon Musk<\/a>, flexing<\/a>, Fraud<\/a>, ftx<\/a>, FTX collapse<\/a>, FTX SBF<\/a>, ICE<\/a>, Intercontinental Exchange (ICE)<\/a>, measured upset<\/a>, risk<\/a>, Sam Bankman-Fried<\/a>, SBF’s model<\/a>, Significant Risk<\/a>, Terry Duffy<\/a><\/div>\n<\/div>\n

What do you think about CME Group\u2019s Terry Duffy calling SBF an \u201cabsolute fraud?\u201d Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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