US lawmakers are investigating the relationship between the collapsed bitcoin exchange FTX and the Commodity Futures Trading Commission (CFTC).
Senators Elizabeth Warren and Chuck Grassley have sent a letter to the agency’s head, Rostin Behnam.
The politicians have requested that the CFTC chairman provide a full report by April 29 on communications and meetings with FTX founder and former CEO Sam Bankman-Fried (SBF).
The senators cited the need to understand how “this multi-billion dollar crime could have occurred” as their motivation.
Warren and Grassley noted that Behnam testified before the Senate in November 2022, confirming that he had met with SBF and his team at least 10 times in the 14 months leading up to FTX’s bankruptcy. Additionally, the regulator’s head acknowledged correspondence with the exchange’s founder.
“Last month, Mr. Bankman-Fried was sentenced to 25 years in prison for stealing $8 billion from FTX users. This deserved punishment offers little solace to victims who have not recovered financially. Protecting Americans’ savings and retirement funds requires Congress and market regulators like the CFTC to determine how this multi-billion dollar crime was allowed to happen,” the politicians stated.
In early April, John Deaton, founder of the Deaton Law Firm, accused US authorities, namely the CFTC and the SEC, of ignoring FTX’s illegal activities.
The lawyer has announced his candidacy for the Senate from Massachusetts, directly challenging Warren.
As I told @masslivenews, there’s no comparison between what I’ve done for working families and what @senwarren has. Another difference? I’ll ALWAYS be on your side. Senator Warren fights for big corporations and special interest groups, I fight for the poor and working class. She…
— John Deaton (@DeatonforSenate) April 15, 2024
“There is no comparison between what I have done for working families and what Warren has done. Another difference? I will always be on your side. She fights for the interests of big corporations, I fight for the poor and working class. She wants to keep her job, I want to do it,” Deaton stated.
In December 2023, Behnam acknowledged the competition between his agency and the SEC for authority to regulate the crypto industry.
During Senate hearings, the US Treasury requested additional powers in the digital assets sector, including oversight of foreign exchanges.