Bloomberg investigation reveals only 63% of the crypto firms had an independent board of directors
The Bloomberg team held an investigation among 66 crypto companies and found that there are some big concerns related to their businesses & crypto investors should be worried.
Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City. In 1981, this company was co-founded by Michael Bloomberg. The name of this media is among the top in the world.
On 15 May 2023, Bloomberg published a report on behalf of self-investigation against 60 crypto companies and found that the majority of the crypto exchanges are following a similar kind of operation as the bankrupt exchange FTX was doing.
The investigation noted that only 52% out of the 60 influential crypto firms use third-party independent fund auditing firms, while the rest of them use self-auditing firms to report their reserves.
However, it is not all about the whole fault of the crypto firms because, over the last couple of years, some auditors distanced themself from crypto firms. So some crypto firms are struggling to find a third-party independent auditor.
Further reports noted that only 63% of the crypto companies had an independent board of directors, meaning that they had at least one non-executive member. In short 63% of crypto companies can satisfy the basic trust of crypto investors.
According to the report, crypto companies need to follow all the basic regulatory steps to maintain business health reputation, and also regulatory bodies need to impose more pressure on the crypto companies to follow such basics.
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