FTX: governance lessons galore

‘The epic collapse of FTX, looks set to go down as one of the great financial debacles of all time,’ says Kenneth Rogoff, a professor at Harvard and former chief economist of the IMF. And James Bromley, a partner at Sullivan & Cromwell, who is representing FTX in the bankruptcy proceedings, has said that it is ‘one of the most abrupt and difficult collapses in the history of corporate America and the history of corporate entities around the world.’

Several large, well-known institutions were invested in FTX. Their apparent failure to do proper due diligence on this crypto exchange is strange, to say the least. What are the ramifications for investment governance of the FTX collapse?

There are lessons for investment governance across all asset classes, not just crypto. Rather than seeing FTX as another nail in the coffin for digital assets it should be looked at as an extraordinary failure of due diligence which could have applied to any asset class.

To read more on this story see the November issue of the NED.