U.S. Senators Elizabeth Warren and Charles Grassley have jointly addressed a letter to Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, pressing for accountability regarding his interactions with former FTX CEO Sam Bankman-Fried before the cryptocurrency exchange's collapse. The senators referenced a prior letter from Senator Josh Hawley and stated their intention to "request" information regarding this matter.
In their letter dated April 12, Warren and Grassley, representing different ends of the political spectrum, reminded Behnam of his previous testimony before the Senate Agriculture Committee in December. They highlighted Behnam's acknowledgment of multiple meetings with Bankman-Fried and his team at the CFTC's offices, emphasizing the importance of understanding the circumstances surrounding these interactions.
During the Senate hearing, Behnam had advocated for expanded powers for the CFTC, emphasizing the necessity of closing regulatory gaps to safeguard Americans' savings and retirement funds. The senators underscored the urgency of investigating how the collapse of FTX, a multi-billion dollar event, was allowed to transpire, emphasizing the role of Congress and regulatory bodies like the CFTC in this endeavor.
Behnam had also noted during the hearing that LedgerX, a CFTC-regulated entity owned by FTX, was not implicated in the collapse and continues to operate. In light of these discussions, Warren and Grassley requested comprehensive documentation of all interactions between Behnam or CFTC staff and individuals associated with FTX, including meetings, phone calls, written correspondence, and conversations.
Furthermore, the senators sought a detailed timeline outlining the CFTC's awareness of the fraudulent activities and any investigations initiated or ongoing concerning the involved parties. Their aim was to gain insight into the nature and frequency of Behnam's communications with Bankman-Fried before the public disclosure of his crimes. This inquiry aligns with Senator Hawley's previous inquiries to regulatory authorities about potential investigations or settlements related to FTX or its executives prior to the collapse.
