Before cryptocurrency exchange FTX and its founder Sam Bankman-Fried (SBF) were linked by allegations of misappropriation of user funds, SBF was one of the most influential crypto entrepreneurs. Long before the collapse of FTX, allegedly leaked correspondence with a leading regulator signaled the intention of the SBF to ensure federal regulation of the exchange.
On May 28, 2022, nearly six months before FTX filed for bankruptcy and SBF stepped down as CEO, Federal Deposit Insurance Corporation (FDIC) chairman Martin Grunberg received an invitation to meet with SBF on June 13, 2022, according to the Washington Examiner. . The email was delivered through former CFTC Commissioner Mark Wetgen, who joined FTX US as Head of Regulatory Policy and Strategy in November 2021.
In the second half of the email, Wetjen told Grunberg that FTX is in “the unusual position of begging the federal government to regulate us.” He further added:
“We have a statement to the CFTC outlining the agency how to do this. All the CFTC has to do is approve it. Once the CFTC does that, the rest will follow – other major US exchanges also have CFTC licenses.”
In response to a request from SBF, Grunberg agreed to meet with the duo, as shown in the leaked email below.
After the collapse of FTX, the SBF’s political connections were exposed in parallel investigations. An FDIC spokesman confirmed that the FDIC chairman met with the SBF as part of “routine courtesy calls with heads of financial firms and institutions.”
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Along with federal investigations, new FTX management began conducting internal investigations to find missing funds.
Recent court documents revealed that SBF and five other former FTX and Alameda Research executives received $3.2 billion in payments and loans from organizations associated with FTX. SBF reportedly received the lion’s share of the $2.2 billion in funds from the lot.
