Senate representatives Elizabeth Warren and Charles Grassley have penned a missive to CFTC chairman Rostin Behnam requesting details about any past communications he may have had with Sam Bankman-Fried, former CEO of the now-defunct cryptocurrency exchange FTX. The duo aims to reiterate their demand for this information, referencing a previous letter from Senator Josh Hawley directed towards Behnam and others.
Warren and Grassley, holding differing political views, reminded Behnam during a Senate Agriculture Committee hearing in December that for the past year and a half, he and his team had met with Bankman-Fried’s team on ten separate occasions at the CFTC office upon their request.
At the hearing, Behnam, the lone witness, urged for additional powers for the CFTC, expressing concern that without new regulations, there would be loopholes in the federal regulatory system, even if other regulatory bodies took actions within their current scope. Warren and Grassley expressed similar concerns in a letter sent on April 12th.
“Safeguarding the savings and retirements of Americans requires Congress and market regulators like the CFTC to determine how this multi-billion-dollar crime was allowed to happen.”
Additionally, it’s worth mentioning that LedgerX, which is overseen by the CFTC and owned by FTX, continued to function during the FTX crisis.
The senators have requested that Behnam and the Commodity Futures Trading Commission (CFTC) staff provide detailed reports on all encounters, whether in-person meetings, phone conversations, written communications, or verbal exchanges, between themselves and Bankman-Fried, FTX, Alameda, or related executives. Furthermore, they seek a chronology of when the CFTC became aware of any fraudulent activities involving these parties, including information about any ongoing or planned investigations.
Based on the letter, the senators are requesting clarification on the frequent communication between Behnam and Bankman-Fried prior to any information about Bankman-Fried’s alleged wrongdoings being made public.
In November, Republican Hawley penned letters to Attorney General Merrick Garland, AG Behnam, and SEC Chairman Gary Gensler inquiring if any of their agencies had initiated investigations into FTX or Alameda prior to their downfall, or entered into undisclosed agreements with these companies or their top executives.
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2024-04-16 01:03