Often VCs will have a seat on the company's board--in which case they might be liable. However, it doesn't seem that Sequoia et al had seats on the board, at l

Often VCs will have a seat on the company's board--in which case they might be liable. However, it doesn't seem that Sequoia et al had seats on the board, at least from this early 2022 press release [1]. Holding shareholders that are not directors accountable is extremely difficult. This is called "piercing the corporate veil" (worth a google) and is done only vary rarely and in cases of clear and outrageous misconduct attributable to the shareholders themselves—it's so rare because it's antithetical to the entire premise of the "limited" corporation. [1] https://www.prnewswire.com/news-releases/ftx-us-derivatives-announces-board-of-directors-301463938.html https://www.prnewswire.com/news-releases/ftx-us-derivatives-...