Before the FTX crypto exchange and its founder Sam Bankman-Fried (SBF) SBF has been tied up in allegations of misappropriation of user funds and has been among the most influential crypto-entrepreneurs. Long before FTX collapsed, an allegedly leaked email exchange with the top regulator shows the SBF’s intent to ensure federal regulation of the exchange.
May 28, 2022, almost six months before FTX filed for bankruptcy and SBF resigned as CEO, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg accepted invitation to meet with SBF on June 13, 2022, Washington Examiner reported. The email was brokered by former CFTC Commissioner Mark Wetjen, who joined FTX US in November 2021 as head of policy and regulatory strategy.
In the second half of the email, Wetjen told Gruenberg that FTX was in the “unusual position of asking the federal government to regulate us.” He further added:
“We have an application before the CFTC that sets out for the agency how to do this. All the CFTC has to do is approve. Once the CFTC does, others will follow – other major US exchanges also have CFTC licenses.”
In response to SBF’s request, Gruenberg agreed to meet with the pair, as detailed in the leaked email below.
After the collapse of FTX, SBF’s political ties were exposed during a parallel investigation. An FDIC spokesman confirmed that the FDIC chairman met with the SBF as part of “routine courtesy visits with leaders of financial firms and institutions.”
Related: Sam Bankman-Fried to propose revised bail package ‘by next week’
Along with the federal investigation, the new FTX management began an internal investigation to track down the missing funds.
Sharing the just released FTX Debtors press release: https://t.co/r7PlneGSXF
— FTX (@FTX_Official) March 16, 2023
Recent court documents revealed that SBF and five other former FTX and Alameda Research executives received $3.2 billion in payments and loans from FTX-related entities. SBF reportedly received the lion’s share of $2.2 billion in funds from the lot.
