U.S. Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero said the FTX incident raised “serious questions” about how “venture capitalists and fund managers scrutinize his business before investing client money,” according to Bloomberg. Christy Goldsmith Romero said "what kind of due diligence did they do" and "why did they turn a blind eye to a red light that was supposed to be really flashing". Christy Goldsmith Romero believes that investors cannot really pay attention to due diligence because of the interconnectedness of the encryption industry and its possible potential conflicts of interest.