Recently, LedgerX alleged that former CFTC Chairman J. Christopher Giancarlo has delayed their Bitcoin derivatives die to ‘personal bias.’ The news created a lot of stir and also received criticism from the commission.
In a recent tweet, the COO of LedgerX, Juthica Chou, suggested that it was a CFTC official who made the leak in the first place. She said,
whoever @CFTC gave @coindesk the tip on LX unfair treatment is not the hero we deserve but the hero we needed
there were only two people at @ledgerx with knowledge of those documents and it definitely wasn’t us that wanted to make this public
According to the two letters revealed by Coindesk, LedgerX had accused Giancarlo of holding animosity against LedgerX CEO. It was because of a blog post by the CEO about ‘preferential treatment’ by the CFTC.
Why is LedgerX claiming Foul?
Juthica came forward with the further details of how the commission treated them. According to the CFTC, the review process “became prolonged due to repeated changes in the company’s licensing strategy.” However, Juthica claimed that the application not been changed since November 2018.
She also cited a reference from a personal conversation with one of the directors in the commission. She quoted him,
“I get it, it’s unfair. I totally get that it’s unfair. I just can’t do anything about it because I don’t control the Commission.”
It seems to be pointing at the Chair who was in control of the CFTC at the moment. The CEO Paul Chou and spouse of Juthica has demanded an apology from the CFTC for claiming a change in the “changing licensing strategy” (which she is in charge of). He tweeted,
anyone left with integrity at the @CFTC call her personally to apologize. otherwise, we can do this all day.
Was it Alleged Animosity or ‘Preferential Treatment’?
According to the letters, Giancarlo was inclined to approve first ICE’s Bakkt. The CEO claimed that Bakkt and ErisX were given preference so that the Chairman could establish a legacy of his own.
Earlier this year, there was also a momentary confusion in the crypto space. It was reported that LedgerX was cleared for ‘physically delivered crypto futures contract by a regulated space’ and had launched their product. However, the CFTC soon stepped in and clarified that the approval is still pending.
Last month, the CEO also hurled a thread of angry tweets on what went wrong with their Bitcoin futures contract.
Bakkt’s Bitcoin futures contracts began trading last week with much hype. However, LedgerX claims that like options trading on Bitcoin, LedgerX should have been the first launch to them.
Do you think the probe would redress the accusations made by LedgerX? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com