[fallingknife]

The downside of throwing millions of dollars at someone is losing those millions, which they did. You are basically suggesting that a fraud victim should be punished more than the money they lost because they were too stupid to see the fraud.

[morsch]

We punish banks for failing to do proper KYC even when they're also victims of fraud.

[nyokodo]

> You are basically suggesting that a fraud victim should be punished more than the money they lost

Their actions brought in more victims, and therefore investors ought to be wary of listening to them in future. They ought to be also punished by a hit to their reputation i.e. by being held partially responsible.

[fakedang]

They didn't "bring" in more victims, more victims joined in because they were lazy, just like most of the VC industry.

[nyokodo]

> more victims joined in because they were lazy...

They were lazy because they relied on the reputation of who was pushing for FTX, now their reputations won't be so rock solid. That's some justice.

[bmitc]

It's a bit strong to call Sequoia "fraud victims". They were at a minimum incompetent and at a maximum intentionally misleading to other investors. You shouldn't write an article like this (https://archive.ph/GQkCp) unless you have done your research. Did they do literally any due diligence prior to leading a massive investment round?

Just because they stand to lose millions doesn't excuse their responsibility and influence. Venture capitalists have no one to blame but themselves for the risky companies out there. They are effectively snake oil salesmen, just looking to siphon off relatively short-term profits under the guise of "changing the world".

[tomatocracy]

Isn't it a bigger indictment of the "follower" investors who did no due diligence of their own because Sequoia was investing? Why would anyone trust their money with these investors instead of investing with Sequoia if that's all they do?

[bmitc]

In my opinion, it's all of the above.