In the investigation conducted closely around the bankrupt data encryption exchange FTX, the Commodity Futures Trading Federation (CFTC) doubted the due diligence conducted by institutional investors and their obligations to consumer asset losses.

In an interview with Bloomberg News, Christy Goldsmith Romero of the CFTC Committee said that the venture capital companies that had to write down millions of dollars of investment to close to zero had given "serious problems" to the due diligence conducted last year.

She expressed concern about the lack of data records released by FTX CEO John Ray in court and the accounting control of the exchange.

The lack of records, coupled with "a certified public accountant who has never heard of", drives CFTC to ask questions about the attitude of institutional investors. Romero gave a series of questions about this matter:

"How is this possible? So do they turn a deaf ear to it? Are they distracted by the commitment of such independent innovation?"

Sam Bankman Fried, founder and former CEO of FTX, takes trust as a marketing method to gain the confidence of investors. However, Romero answered the investor sentiment at this stage and said, "We understand that this is not true."

Therefore, in her view, the risk investment applicable to FTX ignored the warning signal during due diligence and further doubted their participation.

Romero asked at the end of the discussion on the topic at hand: "Then, are there any contradictions that restrict them (venture capital advocates) to really care about due diligence and the facts she is discovering?".

Kevin O'Leary, a famous star and investor of Shark Tank who used to apply FTX, warned that the data encryption exchange that would not be regulated might go bankrupt. He pointed out that:

"If you ask me, will there be another meltdown to zero? Naturally, 100% of the meltdown will occur, and it will happen again and again."

According to a report from the National Bureau of Economic Research, as previously reported by CoinTelegram, 70% of the trading volume of the unregulated exchanges is bleached.