THE COLLAPSE of FTX has underscored a "distortion" in the venture capital market and the need for a correction across the industry, the boss of a global investment body has said.
"When you look at what happened with FTX it is really breathtaking," she told City A.M. in an interview.
"But I think that's where I see the scale of the money available does create distortion, and when there's zero per cent interest rates or an opportunity to resell, of course that distorts markets."
She added that there was now a "necessary correction" in the industry as cheap cash dries up and "accountability" returns.
"When there's so much money out there and so much speculation irresponsible things get done," she said.
A host of big name investors were forced to publicly write down their stakes in
John Ray III, the new boss brought in to oversee the bankruptcy proceedings of FTX, has described the firm as suffering from an "unprecedented and complete failure of corporate controls".
Questions have since been swirling in the industry over how FTX was able to part prolific investors from their cash. The former COO of
(c) 2022 City A.M., source