According to CME Group CEO Terry Duffy, the executive met with former FTX CEO Sam Bankman-Fried (SBF) last March at a conference, and Duffy ended up calling the FTX leader a “fraud “. When Duffy sat down with SBF, the former FTX executive said his end goal was to compete with CME Group.
Last March, CME Group’s Terry Duffy called SBF a ‘fraud’ and said he was the only one besides ICE to call ‘BS on These Clowns’
Terry Duffy, CEO of CME Group, the world’s largest derivatives exchange, recently sat down with the hosts of the “On The Tape” podcast and discussed FTX’s recent meltdown. Duffy Explain that last March he sat down with former FTX CEO Sam Bankman-Fried (SBF) and they discussed the competition. Duffy asked the former FTX executive what his end goal was and SBF replied “well, I want to compete with you.” Duffy said he replied “Great, I’m all for competition, what do you want to do?”
Duffy explained that SBF said he wanted to compete with CME in crypto, so Duffy said, “I’ll give you a better one, what if 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 wanted in return for the deal. “You know what I want,” Duffy told SBF. “Let me be your risk manager, I’ll clean it up to make sure everything is done right.” SBF responded that the CME Group CEO would not roll out his model, and Duffy said “your model is crap”. Dufy added:
Why should I deploy a model that will introduce a risk to the system? Of course, I’m not going to deploy your model.
Duffy then said that SBF turned him down outright and the CME Group CEO told the former FTX CEO, “You know what? You are an impostor. You are an absolute fraud. You’re supposedly worth $26 billion and you’re an altruist. If you’re a $26 billion altruist, how come there’s not a $10 billion gift to someone right now? The CME Group CEO continued:
How about a donation of 15 billion dollars? You know what? My net worth starts with no BS. I’ll give you three to one [odds] that I have more money than you. I’ll tell you what, I’ll give you four to one [odds] that I have more money in my right pocket than your net worth. You’re an impostor and I’m going to make sure we let it be known.
Duffy pointed out that the FTX idea was “flawed and poses a significant risk to market stability”, Elon Musk says SBF triggered his BS detector
After meeting with SBF, Duffy said he went to speak in front of Congress, around the time FTX was seeking approval from the U.S. Commodity Futures Trading Commission (CFTC) to become a clearing organization. derivative products. Duffy noted that he was “reprimanded” during the congressional hearing, but would not back down. “I said you could lose 85% to 95% of your value overnight and [SBF] won’t commit to keeping this just crypto,” Duffy remarked on the podcast. “He wants it rolled out across all asset classes” and Duffy further pointed out that the SBF model would lead to “biblical disaster”.
“FTX’s proposal is clearly flawed and raises [a] significant risk to market stability and market participants,” Duffy wrote on the subject in mid-May 2022.
During the first week of October, reports said that CME Group was looking to register as a Direct Forward Commissionaire (FCM). FTX’s application to the CFTC was still pending approval, but the application has now been dropped. Duffy, 64, recently spoke to Bloomberg after the collapse of FTX and Told the news publication that it won’t stop cryptocurrency futures trading just because of “a bad actor.”
“I’m not ready to say I would take it down,” Duffy said. “We’ve been at the forefront of innovative products, but what we don’t do is do it recklessly,” the CME Group executive added. During the interview with the hosts of the “On The Tape” podcast, Duffy further referred to FTX executives as a bunch of clowns. “So I’m upset about this (the FTX situation),” Duffy remarked. “But I am a measured upset. I’m a very measured upset, because no one else was calling BS on these clowns but me. My friends at the Intercontinental Exchange (ICE) are the only other exchange that said “we don’t like that either”.
In addition to CME’s Duffy, Tesla and Twitter executive Elon Musk told the audience that SBF triggered his BS detector. After someone shared a conversation between Musk and an FTX representative, in the conversation Musk asked, “Does Sam actually have $3 billion in cash?” When Musk saw someone sharing the text conversation on Twitter, he verified that the text was real. “Right. He triggered my BS detector which is why I didn’t think he had $3 billion,” Musk tweeted in response.
What do you think of CME Group’s Terry Duffy calling SBF an “absolute fraud?” Let us know what you think about this topic in the comments section below.
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