Crypto Giants Continue to Play by Their Own Rules, Unfazed by FTX Bankruptcy
A Bloomberg report has revealed that many crypto firms still follow some wrong approaches to their operations.
The surveyed firms handle assets worth tens of billions of dollars daily but don’t work with external auditors and independent boards to ensure accountability and openness.
The report noted that the collapse of the FTX exchange and its sister company Alameda Research hadn't discouraged many crypto firms from following their own rules.
Bloomberg surveyed 60 top crypto firms in Q1 of 2023. The respondents included token issuers, crypto exchanges, analytics businesses, and mining companies.
The focus of the survey was to determine how crypto firms handle their controls and governance practices.
Some top firms control tens of billions of dollars in crypto assets daily. But while some adhere to the traditional standards guiding a firm's operations, others don't.
The researchers focused on the companies that were publicly listed, held a significant influence in the crypto industry, or were valued at over $1 billion in private fundraising.
The firms under survey received the same questions to identify those operating with a third-party auditor and an independent board.
Over half of the 60 crypto companies provided full or partial answers. 17 firms refused to participate in the survey, while 8 firms refused to respond to the questions.
Also, the findings revealed that half of the crypto firms utilize a third-party auditor to assess their financial status.
63% of the firms already have an independent board, and almost all the firms have raised outside investments based on their information on PitchBook.
Further, the survey result showed that 46% of the 24 crypto companies that currently have an external auditor said it
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