CME Group CEO says he known as out Sam Bankman-Fried the primary time he met him, months earlier than FTX’s collapse

FTX CEO Sam Bankman-Fried poses for a picture, in an unspecified location.

FTX CEO Sam Bankman-Fried poses for an image, in an unspecified location, on this undated handout image, obtained by Reuters on July 5, 2022.FTX/Handout through REUTERS/File Picture

  • CME Group CEO Terry Duffy stated he known as Sam Bankman-Fried a “absolute fraud” in March.

  • “Instantly my suspicions have been up,” Duffy advised CNBC on Tuesday.

  • Bankman-Fried stepped down as CEO and FTX filed for chapter 11 chapter on November 11.

Terry Duffy, the chief government of CME Group, stated the primary time he met Sam Bankman-Fried he known as him out as a fraud.

“Instantly my suspicions have been up,” Duffy advised CNBC on Tuesday, after he initially recounted his assembly with Bankman-Fried final week on the “On the Tape” podcast. “After which once I met with [Bankman-Fried], I knew instantly this a joke, that is completely going nowhere.”

Earlier than his assembly with Bankman-Fried, Duffy stated he met with the top of the Commodities Futures Buying and selling Fee to ask why it was contemplating Bankman-Fried’s utility to ease regulatory guidelines for his buying and selling mannequin, because it concerned nice danger.

FTX filed for chapter and Bankman-Fried stepped down as CEO on November 11. Commentators have in contrast the collapse of the corporate to the 2008 downfall of Lehman Brothers.

“You are a fraud, you are an absolute fraud,” Duffy stated he advised Bankman-Fried on the assembly in March earlier this yr.

The crypto alternate is now beginning its chapter listening to in Delaware, and FTX might have greater than one million collectors it owes cash to.

Duffy stated Bankman-Fried, whereas sitting at a bar, requested him why he would not let FTX develop.

“You can see there have been so many various crimson flags,” he stated. “I advised my staff this had nothing to do with crypto. He needed to record all asset lessons, mine, the Intercontinental, the CME and all people else’s, underneath his mannequin which might have been, as I stated, a biblical catastrophe.”

Now, Duffy stated he desires to know the place the cash got here from for issues like FTX’s political donations, luxurious houses, and different purchases. He wonders if these are buyer funds or income from the crypto alternate.

“Who’s cash have been they spending, unsuspecting purchasers’?” Duffy stated. “Numerous questions should be answered.”

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