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 frontman a “fraud.” When Duffy sat down with SBF, the former FTX executive said his ultimate goal was to compete with CME Group.
Terry Duffy of the CME group last March called SBF a “fraud” and said he was the only one other than ICE to call “BS on these clowns”
Terry Duffy, the chief executive officer of CME Group, the world’s largest derivatives exchange, recently sat down with the hosts of the “On The Tape” podcast and discussed the recent FTX crash. Duffy explained 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 ultimate goal was and SBF replied “well, I want to compete with you”. Duffy said he replied “Great, I’m all for the competition, what do you want to do?”
Duffy explained that SBF said it wanted to compete with CME in cryptocurrencies, so Duffy said, “I’ll give you a better one, how about I give you my $30 million worth of crypto franchises and we’ll go from there?” SBF responded to Duffy asking the CME Group CEO what he wanted in exchange for the deal. “You know what I want,” Duffy told SBF. “Let me be your risk manager, I’ll delete it to make sure it’s done correctly.” SBF replied that the CME Group CEO would not implement the model of him and Duffy said “your model is crap”. Duffy added:
Why should I implement a model that will introduce risk into the system? Obviously I will not distribute your model.
Duffy then said that SBF rejected him outright and the CME Group CEO told the former FTX CEO, “You know what? You are a fraud. You are an absolute fraud. You are supposedly worth $26 billion and are an altruist. If you’re an altruist to $26 billion, how come there isn’t a $10 billion donation going to someone right now? The Chief Executive Officer of CME Group continued:
How about a $15 billion donation? You know what? My net worth doesn’t start with any BS. I’ll give you three to one [odds] that I have more money than you. I tell you what, I give you four to one [odds] that I have more money in my right pocket than your net worth. You are a cheater and I will make sure we publish it.
Duffy stressed FTX idea was ‘deficient and poses significant risk to market stability’, Elon Musk says SBF has activated its BS detector
After meeting with SBF, Duffy said he went to speak before Congress, right around the time that FTX was seeking approval from the US Commodity Futures Trading Commission (CFTC) to become a derivatives clearing organization. . Duffy noted that he was “reprimanded” during the congressional hearing, but he would not back down. “I said you could lose 85% to 95% of your value overnight and [SBF] he’s not going to commit to holding this crypto alone,” Duffy noted on the podcast. “He wants it implemented across all asset classes,” and Duffy further stressed that SBF’s model would lead to a “biblical disaster.”
“FTX’s proposition is glaringly lacking and arises [a] significant risk to market stability and market participants,” Duffy wrote on the matter in mid-May 2022.
During the first week of October, reports claimed that CME Group was looking to register as a direct futures commission trader (FCM). FTX’s application with the CFTC was still pending approval, but the application has now been rejected. 64-year-old Duffy recently sat down with Bloomberg following the FTX crash and told the news publication that he won’t stop trading cryptocurrency futures just because of “a bad actor.”
“I’m not willing to say I would take it off the list,” Duffy said. “We have been at the forefront of innovative products, but what we don’t do is do it recklessly,” added the CME group executive. During an interview with the hosts of the “On The Tape” podcast, Duffy also called FTX executives a bunch of clowns. “So I’m shocked by this (the FTX situation),” Duffy noted. “But I am a measured perturbation. 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 has said ‘we don’t like this either.'”
In addition to Duffy, Tesla and CME Group Twitter executive Elon Musk told the audience that SBF has activated its BS detector. After someone shared a conversation between Musk and a representative from FTX, 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. “Accurate. He tripped my BS detector which is why I didn’t think he had $3B,” 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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