FTX’s Venture Capital Backers Face ‘Serious Questions,’ CFTC Official Says
- Investors should’ve seen ‘red lights,’ Goldsmith Romero says
- Collapse raises concern about funds’ due diligence, conflicts
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The failure of Sam Bankman-Fried’s FTX crypto empire raises “serious questions” about how well venture capitalists and money managers scrutinized his operations before investing client funds, a Commodity Futures Trading Commission official said.
“What kind of due diligence did they conduct?” Commissioner Christy Goldsmith Romero said Friday in a Bloomberg Television interview. “Why did they turn a blind eye to what should have been really flashing red lights?”