The collapse of Sam Bankman-Fried's crypto empire raises “serious questions” about how well venture capitalists and money managers studied its operations, according to Commodity Futures Trading Commission (CFTC) spokesperson Christy Goldsmith Romero. before investing customer funds.
“Why did they turn a blind eye to what was really supposed to be flashing red lights? What kind of due diligence did they do? If an investment fund invests millions of dollars in a company and then has to write it off completely in a year, this raises a lot of questions for him, ”says Romero.
The CFTC believes that venture capitalists who previously supported FTX deliberately turned a blind eye to disruption of the exchange's operations.. According to the regulator, this calls into question the sincerity of their intentions towards customers, and their role in the FTX business should be legally assessed.
Earlier, Christie Goldsmith Romero called on Congress to ban newly licensed cryptocurrency exchanges from certifying products for listing themselves.