CFTC Commissioner Questions VCs' Due Diligence
Investor due diligence in the failing crypto-exchange FTX has sparked concerns from the Commodity Futures Trading Commission (CFTCP). VCs had to write down their multimillion-dollar investments to practically nothing, raising "serious doubts" about their responsibility.
Commodity Futures Trading Commission (CFTC) raises questions regarding the level of due diligence carried out by institutional investors and their level of accountability regarding the loss of user funds in the context of ongoing investigations regarding the defunct cryptocurrency exchange FTX. These investigations are taking place in the context of ongoing investigations regarding the FTX. Concerning the extent of responsibility that should be taken for the misappropriation of user cash, some concerns have been posed. These investigations are now still being carried out. Concerns and questions have been voiced in connection to the amount of responsibility that has to be taken for the theft of user cash. These questions and concerns have been presented in a number of different ways.
In an interview with Bloomberg, CFTC Commissioner Christy Goldsmith Romero stated that venture capital firms that had to write down their investments in the millions of dollars to nearly zero raises "serious questions" about the level of due diligence that was performed over the course of the previous year. Romero was referring to the fact that these firms had to reduce their investments from nearly zero to almost zero. Romero was alluding to the fact that these companies were required to lower the amount of money they invested from practically nil to almost zero. Romero was making a reference to the fact that these businesses were mandated to reduce the amount of money they invested from almost little to basically nothing. Romero was making a reference to the fact that these companies were required to decrease the amount of money they invested from nearly nothing to essentially nothing, and he was saying this in the context of his comment.
She voiced her concerns to the magistrate in response to the revelations that the CEO of FTX, John Ray, had made in court regarding the fact that the exchange lacked both records of its financial transactions and procedures to oversee such operations. John Ray was testifying about the fact that the exchange lacked both records of its financial transactions and procedures to oversee such operations. The fact that the exchange did not keep records of its financial dealings and did not have policies and processes in place to monitor such dealings was a source of worry for her. She was made to feel uneasy as a result of these revelations.
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