CME’s Terry Duffy says he saw trouble before FTX collapse

A serious change government says he detected purple flags months before the historic FTX collapse.

CME Group chairman and CEO Terry Duffy stated he suspected corruption on the cryptocurrency change the day of his first one-on-one assembly with founder Sam Bankman-Fried.

“I told my team this had nothing to do with crypto,” Duffy advised CNBC’s “Fast Money” on Tuesday. “He wanted to list all asset classes, mine, the Intercontinental, the CME and everybody else’s, under his model which would have been… a biblical disaster.”

Bankman-Fried’s workforce didn’t instantly reply to a request for remark.

Duffy first recounted his assembly with Bankman-Fried final week on the “On the Tape” podcast, which is hosted by “Fast Money” merchants Man Adami and Dan Nathan.

“You’re a fraud. You’re an absolute fraud,” Duffy stated he advised Bankman-Fried.

Now, Duffy is giving additional particulars on what occurred main as much as his encounter with him.

Duffy needed to know whey the Commodities Futures Buying and selling Fee was Bankman-Fried’s request to ease regulatory guidelines to push his buying and selling mannequin. He was advised it was required below innovation pointers.

“Right away my suspicions were up,” Duffy stated. “Why is there so much pressure coming for this application? And, then when I met with him, I knew right away this a joke.”

Nonetheless, Duffy stated he is not shocked FTX captivated so many traders and high-profile donors.

“When you have the greatest quarterback of all time and a supermodel wife doing a commercial picking up the phone saying ‘Are you in, are you in, are you in.’ To me, it looks like a pump-and-dump scheme,” stated Duffy. “People get very influenced by people like Tom [Brady].”

The FTX collapse is the largest cryptocurrency change chapter on document. It is now within the early days of a chapter listening to in Delaware. On Monday, FTX legal professional James Bromley, employed by FTX’s new administration, stated “What we are dealing with is a different sort of animal.”

“There are going to be a lot of hearings going on in the future. Let’s follow the money. Let’s see who knew what, when and where,” added Duffy.

The Senate Agriculture Committee plans to carry a listening to into the FTX implosion on Dec. 1.

“I hope someone has the courage to ask, ‘Was anybody putting pressure on the CFTC to move forward with an application that could have put everything at risk?'” Duffy stated.

Disclosure: CME Group is a presenting sponsor of the “On The Tape” podcast.


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