According to CME Group CEO Terry Duffy, the executive met former FTX CEO Sam Bankman-Fried (SBF) at a conference last March, 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.
Last March, CME Group’s Terry Duffy called SBF a “Scam” and said he was the only person other than 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 to discuss the recent collapse of FTX. Duffy he explained 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 was like, “Great, I’m all for competition, what do you want to do?”
Duffy explained that SBF said it wanted to compete with CME in crypto, so Duffy said, “Shall I give you something better, give you $30 million worth of my crypto 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 it’s done right.” SBF responded that the CEO of CME Group would not use his model, and Duffy said, “Your model is stupid.” Duffy added:
Why would I place a model that would introduce risk to the system? Of course, I’m not going to apply your model.
Duffy later said the SBF rejected him, and the CME Group CEO told the former FTX CEO, “You know what? You are a fraud. You are a complete fraud. You’re supposedly worth $26 billion and altruistic. If you’re a $26 billion altruist, how come someone isn’t giving away $10 billion right now?” The CEO of CME Group continued:
How about a $15 billion donation? what do you know 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’ll give you four to one [odds] i have more money in my right pocket than your net worth. You are a fraud and I will make sure we get this out of there.
Duffy stressed that FTX’s idea is “flawed and poses a significant risk to market stability,” while Elon Musk said SBF launched its BS Detector.
After meeting with SBF, Duffy said he went to address Congress as FTX seeks approval from the US Commodity Futures Trading Commission (CFTC) to become a derivatives clearinghouse. Duffy noted that he was “humiliated” during the congressional hearings but would not back down. “I said you can lose 85% to 95% of your value overnight [SBF] it just won’t commit to holding cryptocurrency,” Duffy noted on the podcast. “He wants it to be deployed across all asset classes,” and Duffy went on to stress that the SBF model would lead to a “biblical disaster.”
“FTX’s proposal is clearly lacking and poses [a] significant risk to market stability and market participants,” Duffy wrote on the subject in mid-May 2022.
In the first week of October, it was reported that CME Group wanted to register as a direct futures commission merchant (FCM). FTX’s application with the CFTC was still awaiting approval, but the application has now been withdrawn. Duffy, 64, recently sat down with Bloomberg following the collapse of FTX and told the news outlet that he won’t stop trading cryptocurrency futures just because of “one bad actor.”
“I’m not ready to say I’m going to delist him,” Duffy said. “We’ve been at the forefront of innovative products, but we don’t do it carelessly,” added the CME Group CEO. During an interview with the hosts of the On The Tape podcast, Duffy later called the FTX executives a bunch of clowns. “So I’m upset about it (the FTX situation),” Duffy said. “But I am measured. I’m so disappointed because no one but me was calling BS on these clowns. “My friends at Intercontinental Exchange (ICE) are the only exchange that says ‘we don’t like it either.'”
In addition to CME Group’s Duffy, Tesla and Twitter CEO Elon Musk have publicly told the SBF that the BS detector is on. After someone shared a conversation between Musk and an FTX representative, Musk asked, “Does Sam really have $3 billion in liquid?” Musk confirmed the text was real when he saw someone sharing the text conversation on Twitter. “Exactly. He set off my BS detector so 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 scam”? Let us know what you think about this topic in the comments section below.
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