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: BloombergShe raised concerns about FTX CEO John Ray’s revelations in court about not having any records and controls over the exchange’s financials. Related: FTX reboot could falter due to long-broken user trust, say observersShark Tank star and investor Kevin O’Leary, who once supported FTX, warned against the possible fall of unregulated crypto exchanges.

Source: Wall Street Journal January 21, 2023 18:09 UTC