FTX’s Attempt to Pitch Itself to FDIC Revealed in Leaked Emails
- An FDIC spokeswoman confirmed that FTX had a meeting with the FDIC Chairman.
- Protect the Public Trust’s Director observes that FTX and co. appear to be attempting to influence crypto regulations in their favor.
On March 19, it was revealed that prior to its November 2022 collapse, FTX attempted to pitch itself in a meeting with the Federal Deposit Insurance Corporation Chairman. Watchdog Protect the Public Trust sent leaked emails to the Washington Examiner which showed correspondence between the two parties. Protect the Public Trust’s Director commented on the leaked emails.
In detail, the leaked emails comprised correspondence between FTX’s Policy Head and former commissioner of the Commodity Futures Trading Commission (CFTC) Mark Wetjen, and FDIC Chairman Martin Gruenberg.
Wetjen shared his praises about his employer FTX as he suggested a meeting with FDIC Chairman Gruenberg. Among other things, Wetjson spoke of FTX’s “Superior Risk Model,” suggesting that the U.S. Federal Government regulates cryptocurrency exchanges and FTX’s pending CFTC application.
Meanwhile, a spokeswoman for the FDIC Julianne Brietbell confirmed that a single meeting, in fact, took place. However, Brietbell elaborated that FIDC chairmen routinely met with leaders of financial firms and institutions as a courtesy.
Notably, Protect the Public Trust’s Director Michael Chamberlain, who sent the emails to the Washington Examiner, shared his observations of the email’s contents. Chamberlain observed that SBF and his colleagues at FTX appeared to be attempting to influence crypto regulations in their favor.
Perhaps we should consider ourselves fortunate because were it not for FTX’s precipitous collapse, the executives now facing federal indictments may have been the primary drivers of government oversight of themselves and their competitors.