When CME Group CEO Called SBF a “Fraud” and a “Clown”

Key Takeaways:

  • CME Group chief executive Terry Duffy called Sam Bankman-Fried a "fraud" in 2021.
  • The CEO called Congress' complicity with FTX's business model a "biblical disaster"
  • Too many inexperienced players added to the devastation.
When CME Group CEO Called SBF a “Fraud” and a “Clown”
SBF a “Fraud” and a “Clown”

YEREVAN (CoinChapter.com) – The infamous demise of Sam Bankman-Fired’s sister companies, Alameda Research and FTX exchange, evaporated billions of investor dollars and shook the crypto community out of trusting centralized exchanges and eccentric personas in the industry. Now Terry Duffy, the CEO of global markets company CME Group says he predicted the “biblical disaster” and called SBF a “fraud.”

Starboy for investors, “biblical disaster” for Terry Duffy

In detail, many analytics gave their take on what happened with FTX and how it’s possible to avoid such collapses in the future. However, few talk about the cult of personality that often takes over even experienced players in the game. So, did SBF ‘charm’ venture companies and Congress into trusting him with nine-figure investments?

Terry Duffy says he saw through SBF’s altruist facade during their meeting in Congressional House Agricultural Committee in March 2021 before FTX came crashing down. The CEO discussed the encounter during the “On the Tape” podcast on Nov 18 and mentioned his risk management proposal to SBF. However, the latter denied the proposal, citing Duffy’s intention to disregard the liquidation model.

Your model is crap. Why would I deploy a model that’s gonna introduce risk to the system?[…] I said to him: You’re a fraud, you’re an absolute fraud. And I’m gonna make sure we get this out there. […]I was berated during the Congressional hearing, but I wouldn’t back down.

said Duffy.

The executive added that he warned Congress members it would be a “biblical disaster” if they allow SBF’s model to continue. “This is the most detrimental thing I’ve seen in my entire life,” added Duffy, citing the sector’s unwillingness to “call B.S.” on Bankman-Fried.

Congressional connivance results in SBF’s broad influence field

Meanwhile, after the Congressional hearing in March, FTX took off and expanded into a company worth $25 billion by Oct 2021. SBF’s influence leaked into the fiat economy and politics. As CoinChapter reported, the entrepreneur invested millions in promoting the Democratic Party. Additionally, the CEO was allegedly involved in a money-laundering scheme run through Ukraine.

Ben Swann, the founder, and CEO of blockchain-based news channel Sovren Media, also assessed the circulating news.

Tens of billions in American “military aid” to Ukraine has not been used to fight Russia but instead was invested into FTX—sending it to Ukraine, transferring it to FTX, and then laundering it back to US Democrats who originally voted to send the money.

added the executive.

Also read: Crypto “non-compliance is not gonna work,” Gary Gensler said to FTX, or did he?

However, Duffy says that SBF’s persona was not the only factor in the disaster.

Too many inexperienced players in finance

CME Group CEO referred to the crisis of too many inexperienced players in the field, who’ve never seen a bearish market.

There are many players in the financial world who have never seen a downtick in the market. They’ve never seen an interest rate above 0. That adds to the volatility of the market.

commented Duffy during the podcast.

Duffy called the lack of experience one of the “underlying factors” in the FTX disaster. While SBF’s personality could have possibly drawn investor interest, it doesn’t erase the fact that some of those investors did not know how to manage the risks and hedge their clients’ funds properly.

Tycoon investor Warren Buffet famously said, “only when the tide goes out do  you  discover who’s  been swimming naked.” According to Duffy, the quote applied to SBF, as the latter was a “clown” that the inexperienced investors failed to recognize.

Many details about SBF’s demeanor and personal life surfaced post-factum. However, the challenge is to recognize the “frauds” of the industry BEFORE they are in control of billions of dollars, and not after, which often requires experience on top of the ‘gut feeling.’

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SBF, When CME Group CEO Called SBF a “Fraud” and a “Clown”

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