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FTX VCs liable to ‘serious questions’ around due diligence — CFTC Commissioner

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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.

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 for him to finally admit FTX US is solvent and give customers their money back... lack of recordkeeping coupled with “an auditor no one’s ever heard of” forces the CFTC to ask questions about the mindset of the institutional investors.

In this regard, Romero asked a series of questions:FTX founder and former CEO Sam Bankman-Fried used trust as a marketing technique to gain investor confidence.

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