[CPLX]

By definition, a “YC Company” is given hundreds of thousands of dollars and direct hands on strategic advice on how to run the company. That’s the meaning of the concept.

The company in question has blatant securities fraud as their core business model.

QED

Here’s a logical construct in return. When people you like do unethical things they are still unethical.

[jsjohnst]

I feel like there’s a lot of leaps in your “logical construct” there.

First and foremost, did YC approve of this “core business model”? Sure, the founders got into YC, but did they pivot during the program (frequently happens)? And while YC may be on the board, they don’t have controlling interest either.

So yeah, there’s a lot of scenarios where people “you know” and/or “partner with” do unethical things, but that fact alone doesn’t mean you are unethical. You very well could be, but guilt by association isn’t enough proof here imho.