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by CharlieDigital 1099 days ago
No; I think they are generally incapable of it.

A lot of this ultimately comes down to trust. Unless they want to do a lot more due diligence (FTX anyone?), trust is the shortcut. Trust in institutions (Stanford, MIT, Harvard, ex-FAANG, ex-McKinsey, etc), trust in people (connections), trust in the individual (serial/repeat).