{"id":541729,"date":"2023-01-21T10:53:00","date_gmt":"2023-01-21T07:53:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-vcs-liable-to-serious-questions-around-due-diligence-cftc-commissioner\/"},"modified":"2023-01-21T10:53:00","modified_gmt":"2023-01-21T07:53:00","slug":"ftx-vcs-liable-to-serious-questions-around-due-diligence-cftc-commissioner","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-vcs-liable-to-serious-questions-around-due-diligence-cftc-commissioner\/","title":{"rendered":"# FTX VCs liable to \u2018serious questions\u2019 around due diligence \u2014 CFTC Commissioner"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3be777dff5e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3be777dff5e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-vcs-liable-to-serious-questions-around-due-diligence-cftc-commissioner\/#%E2%80%9D_FTX_VCs_liable_to_%E2%80%98serious_questions_around_due_diligence_%E2%80%94_CFTC_Commissioner_%E2%80%9C\" >&#8221; FTX VCs liable to \u2018serious questions\u2019 around due diligence \u2014 CFTC Commissioner &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_FTX_VCs_liable_to_%E2%80%98serious_questions_around_due_diligence_%E2%80%94_CFTC_Commissioner_%E2%80%9C\"><\/span>&#8221; FTX VCs liable to \u2018serious questions\u2019 around due diligence \u2014 CFTC Commissioner &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>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\u2019 funds.<\/p>\n<p>CFTC Commissioner Christy Goldsmith Romero stated that VCs that had to write down their investments in millions of dollars to nearly zero raises \u201cserious questions\u201d about the due diligence conducted over the last year, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/videos\/2023-01-20\/cftc-commissioner-on-crypto-regulation-video\">speaking<\/a> to Bloomberg. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/f62a5dd8-4c6a-4a95-a871-3b2653d56dc5.png\"><figcaption style=\"text-align: center;\"><em>CFTC Commissioner Christy Goldsmith Romero questioning the VCs that once backed FTX. Source: Bloomberg<\/em><\/figcaption><\/figure>\n<p>She raised concerns about FTX CEO John Ray\u2019s revelations in court about not having any records and controls over the exchange\u2019s financials.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I&#8217;m glad Mr. Ray is finally paying lip service to turning the exchange back on after months of squashing such efforts!<\/p>\n<p>I&#8217;m still waiting for him to finally admit FTX US is solvent and give customers their money back&#8230;<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/XjcyYFsoU0\">https:\/\/t.co\/XjcyYFsoU0<\/a><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/SdvMIMXQ5K\">https:\/\/t.co\/SdvMIMXQ5K<\/a><\/p>\n<p>\u2014 SBF (@SBF_FTX) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1616120980669366278?ref_src=twsrc%5Etfw\">January 19, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The lack of recordkeeping coupled with \u201can auditor no one\u2019s ever heard of\u201d forces the CFTC to ask questions about the mindset of the institutional investors. In this regard, Romero asked a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of questions:<\/p>\n<blockquote><p>\u201cHow is that possible? So do they turn a blind eye to it? Were they just distracted by this promise of innovation?\u201d<\/p><\/blockquote>\n<p>FTX founder and former CEO Sam Bankman-Fried used trust as a marketing technique to gain investor confidence. However, Romero echoed the current investor sentiment while stating that \u201cWe know now that that&#8217;s not true.\u201d<\/p>\n<p>As a result, she believed that the VCs backing FTX ignored the red flags when it came to due diligence, further questioning their involvement.<\/p>\n<p>\u201cSo was there some conflicts that prevented them (VC backers) from really paying attention to the due diligence and the facts that they were uncovering?\u201d asked Romero while concluding the topic at hand.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>FTX reboot could falter due to long-broken user trust, say observers<\/em><\/strong><\/p>\n<p>Shark Tank star and investor Kevin O\u2019Leary, who once supported FTX, warned against the possible fall of unregulated crypto exchanges. He stated: <\/p>\n<blockquote><p>\u201cIf you\u2019re asking me if there\u2019s going to be another meltdown to zero? Absolutely. One hundred percent it\u2019ll h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en, and it\u2019ll keep happening over, and over and over again.\u201d<\/p><\/blockquote>\n<p>As Cointelegraph previously reported, based on a report by the National Bureau of Economic Research, up to 70% of the trading volume on unregulated exchanges is wash trading.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ftx-vcs-liable-to-serious-questions-around-due-diligence-cftc-commissioner\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; FTX VCs liable to \u2018serious questions\u2019 around due diligence \u2014 CFTC Commissioner &#8220; 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\u2019 funds. CFTC Commissioner Christy Goldsmith Romero stated that VCs that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":541730,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/54ed3952-03f9-453a-9dd0-17a3e2779153.JPG","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75422,135234,75719,89897,74355,70934,67874,71745],"class_list":["post-541729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cftc","tag-ftx","tag-funding","tag-sam-bankman-fried","tag-adoption","tag-regulation","tag-united-states","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/541729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=541729"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/541729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/541730"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=541729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=541729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=541729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}