U.S Senators Probe CFTC Chair Over Past Dealings with FTX CEO Prior to Exchange's Collapse
Summary:
U.S Senators Elizabeth Warren and Charles Grassley are seeking clarification from CFTC Chair Rostin Behnam about his past dealings with FTX CEO Sam Bankman-Fried prior to the cryptocurrency exchange's collapse. They are asking for records of all interactions, as well as detailing the timeline of the CFTC’s awareness of the committed fraud. The request is aimed at discerning how this billion-dollar crime was allowed to occur and ensuring the protection of American citizens' savings and retirements.
Senators Elizabeth Warren and Charles Grassley from the United States have requested CFTC chair Rostin Behnam to disclose his interactions with former FTX CEO Sam Bankman-Fried before the cryptocurrency exchange's downfall. They urge the commission to provide details of their previously asked information, referencing a communication sent to Behnam and others by Senator Josh Hawley. Representing distinct political viewpoints, Warren and Grassley remind Behnam of his December testimony at a Senate Agriculture Committee, mentioning his multiple meetings with Mr. Bankman-Fried in the CFTC office.
Behnam, the lone speaker at the committee, leveraged the session to appeal for expanded authority, claiming the existence of gaps in the federal regulatory framework that only new CFTC powers could fix. In a letter dated April 12, they inscribed, “For the protection of American citizens' savings and retirements, it is vital for Congress and market overseers like the CFTC to discern how this billion-dollar felony was enabled.”
Behnam reiterated that LedgerX, which is regulated by CFTC and owned by FTX, was not implicated in FTX’s downfall and it continues to operate. The senators seek a comprehensive account of interactions, whether through formal meetings, calls, written communication or casual conversations, involving Behnam, CFTC staff and upper management of FTX, Alameda or other linked bodies. They also request a chronological report of CFTC's awareness of the committed fraud, including specifics about any potential or active probes into these entities.
Per the senators, it is crucial to clarify the context of Behnam's continuous exchanges with Mr. Bankman-Fried before his criminal activities came to light. Republican Hawley wrote earlier to Behnam, Attorney General Merrick Garland and SEC Chairman Gary Gensler, inquiring about any commenced investigations into FTX or Alameda prior to their downfall or about any secret settlements with these firms or their leadership.
Published At
4/16/2024 12:44:28 AM
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