Yea this is almost certainly the correct answer. I think any founders that raised a round in the last 2 years can easily understand how this happened. Especial

Yea this is almost certainly the correct answer. I think any founders that raised a round in the last 2 years can easily understand how this happened. Especially to Sequoia, which felt like they were behind in crypto investments (while a16z was getting into all the "big winners"). Lots of pressure to deploy capital, and like the other commentor pointed out, there was a massive a amount of real revenue being made by FTX. That likely also contributed to the lack of scrutiny. Who in their right mind would commit such massive and blatant fraud, when if they simply didn't touch client funds in any weird/illegal way, they would still be an insanely rich billionaire!