CFTC Commissioner: Analysis Whether FTX Crisis Was Intentional

It’s been just revealed that a CFTC Commissioner is analyzing whether the FTX crisis was something intentional or not. Check out the latest reports about the matter below.

The important online publication Blockworks is addressing something important revealed by a CFTC commissioner.

Regarding the troubled crypto exchange FTX, it seems that now, it’s far too soon to tell what risk management or regulatory errors were made — if any — a CFTC commissioner said Wednesday.

Amidst the massive tragedy stemming from FTX’s failures, Commissioner Kristin Johnson said if regulators determine there was wrongdoing, it would still be another question entirely of whether they were intentional in nature, according to the reports revealed by Blockworks.

“We’re in the early days and beginning to peel back the layers of what’s happened, so I would feel remiss to begin to describe what I think are regulatory missteps or even risk management failures,” Johnson said.

The affirmations have been made during an appearance before lawmakers and industry members at the Blockchain Association Policy Summit in Washington.

It is not yet fair to make the determination that the FTX team knowingly and willingly made mistakes when it comes to risk, according to Johnson.

“It’s hard at this point to distinguish, from this distance, risk management failures from something more intentional,” she said.

She continued and explained the following:

“The outcome will be the same…The result is a liquidity crisis, but there are many ways a liquidity crisis will be triggered.”

Skybridge Capital CEO Anthony Scaramucci says he expects other crypto exchange leaders will step up to fill the void left by the collapse of the troubled FTX.

In a new interview at the Bloomberg New Economy Forum in Singapore, Scaramucci says that while FTX founder Sam Bankman-Fried was once driving the conversation on potential crypto regulation, there have been other leaders who will now take over the discussion.