United States Senators Elizabeth Warren and Charles E. Grassley have called for Commodity Futures Trading Commission (CFTC) Chair Rostin Benham to disclose details of his interactions with former FTX founder Sam Bankman-Fried before the exchange’s collapse. The senators requested information on all meetings, phone calls, and written correspondence between Benham and Bankman-Fried, as well as a timeline of when the CFTC became aware of the cryptocurrency scheme involving Bankman-Fried, Alameda Research, and former executives of FTX. Benham had previously admitted to meeting with Bankman-Fried multiple times and exchanging messages with him before FTX’s collapse.
Sam Bankman-Fried was recently sentenced to 25 years in federal prison and ordered to pay $11 billion for his role in a massive cryptocurrency scam that resulted in the loss of nearly $8 billion in customer funds. Elizabeth Warren and Charles Grassley expressed concern over the financial impact on victims of the scheme and called for a deeper investigation into how such a large-scale crime was allowed to occur. They emphasized the importance of Congress and market regulators like the CFTC in safeguarding the savings and retirements of Americans by holding those responsible for financial crimes accountable.
The senators’ letter requesting details of Benham’s interactions with Bankman-Fried follows a similar letter from Senator Josh Hawley to top government officials demanding transparency regarding their correspondence with the FTX founder and other Democratic Party officials. Hawley called for a full investigation into the criminal acts and the individuals involved, as well as a conflict-of-interest review to ensure that Bankman-Fried’s donations to the Democratic Party did not shield him from oversight and accountability. The letters highlight a renewed interest among lawmakers in uncovering potential ties between government officials and Bankman-Fried.
Bankman-Fried has faced criticism for his cozy relationships with high-profile regulatory officials, including SEC Chair Gary Gensler, in what some perceive as an attempt to maintain favorable treatment for FTX. In a private conversation with a reporter, Bankman-Fried revealed that his expressions of concern for crypto regulation were merely for public relations purposes and expressed a dismissive attitude towards regulators. Despite filing to appeal his guilty verdict, Bankman-Fried is expected to face significant challenges due to the substantial evidence against him. The ongoing scrutiny by U.S. lawmakers suggests a growing interest in holding individuals involved in financial crimes accountable and ensuring transparency in regulatory oversight.
