According to the CEO of CME Group, Terry Duffy, the executive consulted with previous FTX CEO Sam Bankman-Fried (SBF) last March at a conference, and Duffy wound up calling the FTX frontman a “fraud.” When Duffy took a seat with SBF, the previous FTX executive stated his objective was to take on CME Group.
Last March CME Group’s Terry Duffy Called SBF a ‘Fraud’ and Says He Was the Only One Besides ICE to Call ‘BS on These Clowns’
Terry Duffy, the president of CME Group, the world’s biggest derivatives exchange, just recently took a seat with the hosts of the podcast “On The Tape” and talked about the current FTX collapse. Duffy explained that last March he took a seat with the previous FTX CEO, Sam Bankman-Fried (SBF), and they talked about competitors. Duffy asked the previous FTX executive what his objective was and SBF responded “well, I want to compete with you.” Duffy stated he responded “Great, I’m all for competition, what do you want to do?”
Duffy discussed that SBF stated he wished to take on CME in crypto, so Duffy stated: “I’ll give you one better, how about I give you my crypto franchises worth $30 million and we’ll go from there?” SBF responded to Duffy by asking the CME Group CEO what he desired in exchange for the offer. “You know what I want,” Duffy stated to SBF. “Let me be your risk manager, I’ll clear it to make sure it’s done properly.” SBF reacted that the CME Group CEO would not release his design, and Duffy stated “your model is crap.” Duffy included:
Why would I release a design that’s going to present danger to the system? Of course I’m not going to release your design.
Duffy then stated that SBF turned him down flat out and the CME Group CEO informed the previous FTX CEO: “You know what? You’re a fraud. You’re an absolute fraud. You are supposedly worth $26 billion and you’re an altruist. If you are an altruist at $26 billion, how come there’s not a $10 billion donation going to someone right at this moment in time?” The CME Group CEO continued:
How ’bout a $15 billion contribution? You understand what? My net worth doesn’t begin with any BS. I’ll offer you three-to-one [odds] that I have more cash than you. I inform you what, I’ll offer you four-to-one [odds] that I got more cash in my ideal pocket than your net worth. You’re a scams and I’m going to ensure we get this out there.
Duffy Stressed That FTX’s Idea Was ‘Deficient and Poses Significant Risk to Market Stability,’ Elon Musk Says SBF Set off His BS Detector
After conference with SBF, Duffy stated he went to speak in front of Congress, ideal around the time when FTX was searching for approval from the U.S. Commodity Futures Trading Commission (CFTC) to end up being a derivatives clearing company. Duffy kept in mind that he was “berated” throughout the congressional hearing however he would not pull back. “I said you could lose 85% to 95% of your value overnight and [SBF] will not commit to keeping this just crypto,” Duffy mentioned on the podcast. “He wants it deployed across all asset classes” and Duffy even more worried that SBF’s design would result in a “biblical disaster.”
“FTX’s proposal is glaringly deficient and poses [a] significant risk to market stability and market participants,” Duffy blogged about the topic in mid-May 2022.
During the very first week of October, reports stated that CME Group was seeking to sign up as a direct futures commission merchant (FCM). FTX’s application with the CFTC was still waiting on approval and now the application has actually been ditched. The 64-year-old Duffy just recently took a seat with Bloomberg after the FTX collapse and informed the news publication that he won’t stop cryptocurrency futures trading even if of “one bad actor.”
“I’m not prepared to say I’d delist it,” Duffy stated. “We’ve been at the cutting edge of innovative products, but what we don’t do is do it in a reckless manner,” the CME Group executive included. During the interview with the hosts of the podcast “On The Tape,” Duffy even more called FTX executives a lot of clowns. “So I am upset by this (the FTX situation),” Duffy mentioned. “But I am a measured upset. I’m a very measured upset, because nobody else was calling BS on these clowns but me. My friends at the Intercontinental Exchange (ICE) are the only other exchange that said ‘we do not like this as well.’”
In addition to CME Group’s Duffy, Tesla and Twitter executive Elon Musk informed the general public that SBF triggered his BS detector. After somebody shared a discussion in between Musk and an FTX agent, in the discussion Musk asked: “Does Sam actually have $3B liquid?” When Musk saw somebody share the text discussion on Twitter he validated that the text was genuine. “Accurate. He set off my BS detector, which is why I did not think he had $3B,” Musk tweeted in reaction.
What do you consider CME Group’s Terry Duffy calling SBF an “absolute fraud?” Let us understand what you consider this topic in the comments area below.
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