Commodity Futures Trading Commission (CFTC) Chairman, Rostin Behnam is expected to testify regarding his extensive involvement with Sam Bankman-Fried, the former CEO of FTX.
Behnam is revealed to have had numerous conversations with Bankman-Fried, who was among the first to be sentenced to 25 years in prison for fraud connected to the FTX cryptocurrency exchange.
According to Behnam, he and his team met with Bankman-Fried up to 10 times over a 14-month period, and they also exchanged “a number of messages”. The messages revolved around Bankman-Fried’s plan to move his initial company LedgerX product line spin-off back to its original location to deal with derivative margin trades, issuing directly to customers without the need for middleman companies.
Regarding the FTX failure, Senators Grassley and Josh Hawley expressed concerns about these conversations, prompting Warren and Grassley to call for more transparency.
They requested copies of all physical and email communications, as well as the timing and structure of the meetings. This can be interpreted as a result of increased scrutiny over FTX’s behavior during the collapse.
Similarly, Gary Gensler, the Chairman of the Securities and Exchange Commission, finds himself in a position similar to that of the SEC agency’s interactions with Bankman-Fried. The senators’ actions contrast with growing critical views about the prospects of regulatory control and the requirement of transparency in the financial oversight industry.
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