Based on the CEO of CME Group, Terry Duffy, the manager met with former FTX CEO Sam Bankman-Fried (SBF) final March at a convention, and Duffy ended up calling the FTX frontman a “fraud.” When Duffy sat down with SBF, the previous FTX govt mentioned his finish aim was to compete with CME Group.
Terry Duffy, the chief govt officer of CME Group, the world’s largest derivatives change, lately sat down with the hosts of the podcast “On The Tape” and mentioned the current FTX collapse. Duffy explained that final March he sat down with the previous FTX CEO, Sam Bankman-Fried (SBF), they usually mentioned competitors. Duffy requested the previous FTX govt what his finish aim was and SBF replied “effectively, I wish to compete with you.” Duffy mentioned he replied “Nice, I’m all for competitors, what do you wish to do?”
Duffy defined that SBF mentioned he needed to compete with CME in crypto, so Duffy mentioned: “I’ll provide you with one higher, how about I provide you with my crypto franchises value $30 million and we’ll go from there?” SBF replied to Duffy by asking the CME Group CEO what he needed in change for the deal. “You realize what I need,” Duffy mentioned to SBF. “Let me be your danger supervisor, I’ll clear it to ensure it’s executed correctly.” SBF responded that the CME Group CEO wouldn’t deploy his mannequin, and Duffy mentioned “your mannequin is crap.” Duffy added:
Why would I deploy a mannequin that’s going to introduce danger to the system? After all I’m not going to deploy your mannequin.
Duffy then mentioned that SBF turned him down flat out and the CME Group CEO informed the previous FTX CEO: “You realize what? You’re a fraud. You’re an absolute fraud. You might be supposedly value $26 billion and also you’re an altruist. In case you are an altruist at $26 billion, how come there’s not a $10 billion donation going to somebody proper at this second in time?” The CME Group CEO continued:
How ’bout a $15 billion donation? You realize what? My internet value doesn’t begin with any BS. I’ll provide you with three-to-one [odds] that I’ve more cash than you. I let you know what, I’ll provide you with four-to-one [odds] that I bought more cash in my proper pocket than your internet value. You’re a fraud and I’m going to ensure we get this on the market.
After assembly with SBF, Duffy mentioned he went to talk in entrance of Congress, proper across the time when FTX was on the lookout for approval from the U.S. Commodity Futures Buying and selling Fee (CFTC) to turn into a derivatives clearing group. Duffy famous that he was “berated” throughout the congressional listening to however he wouldn’t again down. “I mentioned you possibly can lose 85% to 95% of your worth in a single day and [SBF] is not going to decide to preserving this simply crypto,” Duffy remarked on the podcast. “He needs it deployed throughout all asset courses” and Duffy additional careworn that SBF’s mannequin would result in a “biblical catastrophe.”
“FTX’s proposal is manifestly poor and poses [a] important danger to market stability and market individuals,” Duffy wrote concerning the topic in mid-Might 2022.
Throughout the first week of October, reviews mentioned that CME Group was seeking to register as a direct futures fee service provider (FCM). FTX’s utility with the CFTC was nonetheless ready for approval however now the applying has been scrapped. The 64-year-old Duffy lately sat down with Bloomberg after the FTX collapse and informed the information publication that he received’t cease cryptocurrency futures buying and selling simply due to “one dangerous actor.”
“I’m not ready to say I’d delist it,” Duffy mentioned. “We’ve been on the chopping fringe of revolutionary merchandise, however what we don’t do is do it in a reckless method,” the CME Group govt added. Throughout the interview with the hosts of the podcast “On The Tape,” Duffy additional known as FTX executives a bunch of clowns. “So I’m upset by this (the FTX state of affairs),” Duffy remarked. “However I’m a measured upset. I’m a really measured upset, as a result of no one else was calling BS on these clowns however me. My pals on the Intercontinental Change (ICE) are the one different change that mentioned ‘we don’t like this as effectively.’”
Along with CME Group’s Duffy, Tesla and Twitter govt Elon Musk informed the general public that SBF set off his BS detector. After somebody shared a dialog between Musk and an FTX consultant, within the dialog Musk requested: “Does Sam even have $3B liquid?” When Musk noticed somebody share the textual content dialog on Twitter he verified that the textual content was actual. “Correct. He set off my BS detector, which is why I didn’t suppose he had $3B,” Musk tweeted in response.
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