Amid ongoing investigations around the defunct crypto exchange FTX, the Commodity Futures Trading Commission (CFTC) questions the due diligence conducted by institutional investors and their accountability regarding the loss of users’ funds.
CFTC Commissioner Christy Goldsmith Romero stated that VCs that had to write down their investments in millions of dollars to nearly zero raises “serious questions” about the due diligence conducted over the last year, speaking to Bloomberg.
CFTC Commissioner Christy Goldsmith Romero questioning the VCs that once backed FTX. Source: Bloomberg
She raised concerns about FTX CEO John Ray’s revelations in court about not having any records and controls over the exchange’s financials.
I’m glad Mr. Ray is finally paying lip service to turning the exchange back on after months of squashing such efforts!
I’m still waiting