Terrence Duffy of CME Group called Sam Bankman-Freed a fraud

According to the businessman, he had a conversation with the head of FTX, during which the head of CME offered to buy his franchises for $ 30 million.

Terrence Duffy, CEO of the world’s largest derivatives exchange CME Group, spoke about his meeting with FTX CEO Sam Bankman-Freed last March.

Duffy offered to check that everything was working as it should in FTX’s deeds and papers. This was the condition of the deal. If necessary, the businessman was ready to become a risk manager. However, Bankman-Freed, says Duffy, categorically refused. For which he received a charge of fraud from a businessman in response.

“You’re a fraud. You’re an absolute fraud.” – @CMEGroup CEO Terry Duffy recalls his encounter with Sam Bankman-Fried last March.

Listen to the whole interview with Terry, @RiskReversal & @GuyAdami: https://t.co/oMUrL1U90u pic.twitter.com/qZcojWQquU

— On The Tape Podcast (@OnTheTapePod) November 19, 2022

According to the head of the CME Group, after this meeting, he spoke in Congress just as FTX was seeking approval from the US Commodity Futures Trading Commission (CFTC) to obtain a derivatives clearing license. In Congress, the businessman refused to listen.

“I told them that you can lose 85% to 95% of your value overnight, and Bankman-Fried will not stop at just cryptocurrencies. I said that he wanted the FTX model rolled out across all asset classes and stressed that it would lead to biblical disaster,” Duffy recalls.

Back in May, the businessman wrote an entire article where he argued that the FTX development model poses a significant risk to the stability of the market and its participants.

Earlier it became known that the amount of debt obligations of FTX to the 50 largest creditors is $3.1 billion. However, the crypto exchange may have much more creditors.