{"id":15088,"date":"2022-12-02T22:47:38","date_gmt":"2022-12-02T22:47:38","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-regulator-cftc-met-with-sam-bankman-fried-10-times-before-crypto-exchange-ftx-collapsed-exchanges-bitcoin-news\/"},"modified":"2022-12-02T22:47:38","modified_gmt":"2022-12-02T22:47:38","slug":"us-regulator-cftc-met-with-sam-bankman-fried-10-times-before-crypto-exchange-ftx-collapsed-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-regulator-cftc-met-with-sam-bankman-fried-10-times-before-crypto-exchange-ftx-collapsed-exchanges-bitcoin-news\/","title":{"rendered":"US Regulator CFTC Met With Sam Bankman-Fried 10 Times Before Crypto Exchange FTX Collapsed \u2013 Exchanges Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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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 \u201ca classic run based on liquidity crunch.\u201d<\/strong><\/p>\n

CFTC\u2019s Meetings With FTX and Sam Bankman-Fried<\/h2>\n

The chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, shared details of his agency\u2019s meetings with executives of collapsed crypto exchange FTX before the Senate Committee on Agriculture, Nutrition, and Forestry on Thursday.<\/p>\n

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\u2019s 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.<\/p>\n

The CFTC chairman said:<\/p>\n

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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 \u2014 all in relation to this clearinghouse application.<\/p>\n<\/blockquote>\n

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\u2019s \u201cdogged desire to get this application approved.\u201d<\/p>\n

The CFTC chief emphasized: \u201cMy 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 \u2026 so there were a number of emails and messages back and forth all about the application and the status of the application.\u201d<\/p>\n

While Behnam did not recall how many times Bankman-Fried or other FTX executives met with CFTC staff, he said that \u201cthey were in the building quite a bit\u201d to discuss the details of their clearinghouse application.<\/p>\n

The CFTC chairman added: \u201cThere 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.\u201d<\/p>\n

Commenting on the FTX collapse, Behnam said: \u201cIt seems like a classic liquidity crunch.\u201d He concluded:<\/p>\n

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It looks like a classic run based on liquidity crunch.<\/p>\n<\/blockquote>\n

At the time FTX filed for bankruptcy, the CFTC was still reviewing its application and Behnam said no decision had been made.<\/p>\n

Bankman-Fried also met<\/a> with officials at the U.S. Securities and Exchange Commission (SEC) several times before FTX filed for bankruptcy.<\/p>\n

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.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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

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