May 29, 2024

In the US Senate, they became interested in the connections between CFTC and FTX.

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us_congress_coffe-min

US lawmakers are investigating the relationship between the collapsed bitcoin exchange FTX and the US Commodity Futures Trading Commission (CFTC).

Senators Elizabeth Warren and Chuck Grassley sent a letter to the head of the agency, Rostin Behnam.

The politicians requested the CFTC chairman to provide a full report on the correspondence and meetings with FTX founder and former CEO Sam Bankman-Fried (SBF) by April 29.

The senators cited the need to understand how “this multi-billion dollar crime could have occurred.”

Warren and Grassley reminded that Behnam testified before the Senate in November 2022 and confirmed that in the 14 months leading up to FTX’s bankruptcy, he met with SBF and the team at least 10 times. In addition, the agency head acknowledged exchanging messages with the exchange founder.

“Mr. Bankman-Fried was sentenced to 25 years in prison last month for stealing $8 billion from FTX users. This well-deserved punishment was little comfort to the victims who have not recovered financially. Protecting Americans’ savings and retirement funds requires Congress and market regulators like the CFTC to determine how this multi-billion dollar crime was allowed,” the politicians said.

In early April, Deaton Law Firm founder John Deaton accused US authorities, including the CFTC and Securities and Exchange Commission (SEC), of ignoring illegal actions by FTX.

The lawyer ran for Senate in Massachusetts, becoming a direct competitor to Warren.

“There is no comparison between what I have done for working families and what Warren has. Another difference? I will always be on your side. She fights for the interests of large corporations, I fight for the poor and the working class. She wants to save jobs, and I want to create them,” Deaton said.

In December 2023, Behnam recognized the competition between the agency he heads and the SEC for authority to regulate the crypto industry.

Recall that during hearings in the Senate, the US Treasury requested additional powers in the field of digital assets, including control over foreign exchanges.

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