An executive at a major exchange claims to have noticed warning signs months before the historic FTX collapse.
On the day of his first one-on-one meeting with CME Group founder Sam Bankman-Fried, chairman and CEO Terry Duffy stated that he had suspicions of corruption at the cryptocurrency exchange.
Duffy stated on CNBC’s “Fast Money” on Tuesday, “I told my team this had nothing to do with crypto.”He needed to list all resource classes, mine, the Intercontinental, the CME and every other person’s, under his model which would have been… a scriptural catastrophe.”
A request for clarification was not immediately met by the team of Bankman-Fried.
On the “On the Tape” podcast, which is hosted by “Fast Money” traders Guy Adami and Dan Nathan, Duffy first talked about his meeting with Bankman-Fried last week.
“You are deceitful.Duffy said he told Bankman-Fried, “You’re an absolute fraud.”
Duffy is now providing additional details regarding the events that transpired prior to his encounter with him.
Duffy inquired as to the reason why the Commodities Futures Trading Commission was considering Bankman-Fried’s request to relax regulations in order to promote his trading strategy.According to the guidelines for innovation, he was told to do it.
Duffy stated, “Right away my suspicions were up.”Why are people putting so much pressure on this application?And when I saw him, I knew right away that this was a joke.”
Duffy, on the other hand, stated that he is not surprised that FTX captivated so many investors and prominent donors.
“When a supermodel wife and the greatest quarterback of all time answer the phone in a commercial and say, “Are you in, are you in, are you in,”Duffy stated, “It looks like a pump-and-dump scheme to me.”People are greatly influenced by individuals like Tom Brady.
The largest ever bankruptcy of a cryptocurrency exchange can be attributed to the FTX collapse.The bankruptcy hearing in Delaware is just beginning.”What we are dealing with is a different sort of animal,” FTX’s new management hired attorney James Bromley said on Monday.
“In the future, there will be numerous hearings.”Let’s go with the flow.Duffy continued, “Let’s see who knew what, when, and where.”
On December 1, the FTX collapse will be the subject of a hearing by the Senate Agriculture Committee.
“I hope someone will have the bravery to ask, “Was anyone putting pressure on the CFTC to move forward with an application that could have put everything in danger?””Duffy stated
Disclosure:The podcast “On The Tape” has CME Group as one of its presenting sponsors.