Senators Enquire About CFTC’s Links To Sam Bankman-Fried and the Defunct FTX
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Two U.S. Senators – Chuck Grassley and Elizabeth Warren – are demanding that the Chairman of the Commodities Futures Trading Commission (CFTC), Rostin Behnam, provide a detailed accounting of the Commission’s dealings with Sam Bankman-Fried (SBF) of defunct crypto exchange FTX.
While SBF may have been charged and convicted, those with links to his defunct company are facing serious scrutiny to ascertain their level of involvement.
Commentators are now wondering whether the public will see what transpired between the crypto exchange company and the regulator before the former collapsed.
The Senators Want Records Of CFTC’s Meetings With SBF
The senators have sent a letter to Behram, demanding to know the nature of the relationship he kept with SBF in the months before FTX’s explosion. They are specifically demanding the release of records for all phone calls, meetings, and correspondence between them by April 29.
In the letter, the lawmakers reiterated that it’s important to look into the situation to find out how the multi-billion-dollar crime was allowed.
The FTX collapse has affected the livelihood of several Americans who had some of their life savings invested into the company. The senators stated that the regulators must protect the interests of its citizens and safeguard them against such fraudulent entities.
SBF Was Sentenced To 25 Years In Prison For Fraud Using His Crypto Exchange FTX
Behnam has already testified at the Senate Agriculture Committee, saying that the CFTC team has discussed with SBF and other executives of FTX 10 times in the 14 months before the exchange’s collapse.
Additionally, he admitted that he and SBF exchanged several messages within that period. The demands by the senators are coming a month after SBF was sentenced to 25 years in prison for carrying out a huge fraud that resulted in the crippling of the FTX crypto exchange. According to the conviction, his actions directly led to customers’ loss of funds running in billions of dollars.
However, SBF has appealed the sentencing, as he hoped to get a lighter punishment. Grassley and Warren said the impact of the fraud would affect some of the investors of the defunct exchange immensely.
They reiterated that such a level of fraud has crippled many Americans who had money in the exchange, with some of them losing their entire pension money in the process. Senator Warren has been spearheading the inquiries to find out those involved in the massive fraud.
