The formal request seeks to shed light on potential regulatory failures following the recent sentencing of Sam Bankman-Fried (SBF) to 25 years in prison.

U.S. Senators Elizabeth Warren and Charles Grassley have formally requested detailed records of all interactions between Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam and disgraced cryptocurrency tycoon Sam Bankman-Fried (SBF).

The formal request, made in a letter dated April 12, seeks to shed light on potential regulatory lapses surrounding Bankman-Fried’s 25-year prison sentence for defrauding investors of $8 billion through collapsed cryptocurrency exchange FTX.

Full interaction log

The Senators have requested that Chairman Benham provide a complete record of all meetings, phone calls, and written communications that the CFTC had with Bankman-Fried during his tenure. This request includes both official and personal channels used by CFTC staff.

The senators specifically sought information about the dates of those interactions, minutes of meetings and copies of all relevant communications, including messages from both official and personal accounts.

In addition to detailed logs of interactions, the senators requested a timeline outlining what the CFTC knew about fraudulent activity associated with FTX and its affiliates. Such information is seen as key to assessing the effectiveness of the regulatory framework and preventing future financial crimes.

The senators’ investigation follows Behnam’s testimony before the Senate Agriculture Committee, in which he disclosed that he met with Sam Bankman-Fried and his team ten times at the CFTC’s offices at their request.

Behnam also acknowledged a series of text and message exchanges with Bankman-Fried, which raised concerns among lawmakers about the scope of their communications and their impact on the regulatory process.

A bipartisan effort

The SBF ruling last month marked a pivotal moment in one of the most significant fraud cases involving cryptocurrencies in the history of financial regulation.

Despite the harsh sentencing, Warren and Grassley stressed that the outcome offered little comfort to the victims and highlighted the urgent need for reforms to market regulation.

The letter highlights bipartisan efforts to ensure regulators like the CFTC are transparent and accountable in their dealings, especially in an area as volatile and innovative as digital assets.

The senators said they are committed to working with the CFTC to build a more robust and transparent market environment to safeguard the financial interests of American investors.

Chairman Behnam must respond to the Senate inquiry by April 29, 2024, a deadline that underscores the urgency with which Congress must address the aftermath of the FTX collapse.