Glad you liked it. Perhaps I wasn’t clear in purpose though. My point was not to talk about payouts, but to explain how things like this can happen. Because it “violates model of how the world works”. [Edit: I cut stuff from here and expanded on it in footnote above]
I’m just saying there are systemic reasons why the fiasco got as far as it did.
[Edit: Ah this is one of those times I might be being dramatic, but I may as well say] I’m a bit sad to hear “fishing expedition” to this. But [so many EAs didn’t feel similarly] about EA leaders taking some of the blame. I didn’t want to bring EA into this particular comment, but gee. The actors I’ve named here had like 1000x the likelihood of knowing what was going on and being negligent or otherwise at fault somehow than non-Alameda EAs did. It’s a bit flippant to call it a fishing expedition to go after others, if it is worth doing, and when our community has just spent so much time talking about EA fault. dies a bit inside on behalf of EATbh they seem like reasonable suits to me in general, and I hope disincentivize something like this from happening again :/
I characterized the lawsuit is a fishing expedition because I saw no specific evidence in the complaint about what the VC firms actually knew—only assumptions based on rather general public statements from the VCs. And the complaints allege—and I think probably have to allege—actual knowledge of the fraudulent scheme against the depositors. The reason is that, as a general rule, the plaintiff has to establish that the defendant owed them a duty to do or refrain from doing something before negligence liability will attach.
Of course, you have to file the lawsuit in order to potentially get to discovery and start subpoenaing documents and deposing witnesses. It’s not an unreasonable fishing expedition to undertake, but I think the narrative that the VCs were sloppy, rushed, or underinvested on their due dilligence is much more likely than the complaint’s theory that they knew about the depositor fraud and actively worked to conceal it until FTX did an IPO and they unloaded their shares.
(I certainly do not think anyone in EA knew about the fraudulent scheme against depositors either.)
Glad you liked it. Perhaps I wasn’t clear in purpose though. My point was not to talk about payouts, but to explain how things like this can happen. Because it “violates model of how the world works”. [Edit: I cut stuff from here and expanded on it in footnote above]
I’m just saying there are systemic reasons why the fiasco got as far as it did.
[Edit: Ah this is one of those times I might be being dramatic, but I may as well say] I’m a bit sad to hear “fishing expedition” to this. But [so many EAs didn’t feel similarly] about EA leaders taking some of the blame. I didn’t want to bring EA into this particular comment, but gee. The actors I’ve named here had like 1000x the likelihood of knowing what was going on and being negligent or otherwise at fault somehow than non-Alameda EAs did. It’s a bit flippant to call it a fishing expedition to go after others, if it is worth doing, and when our community has just spent so much time talking about EA fault.
dies a bit inside on behalf of EATbh they seem like reasonable suits to me in general, and I hope disincentivize something like this from happening again :/I characterized the lawsuit is a fishing expedition because I saw no specific evidence in the complaint about what the VC firms actually knew—only assumptions based on rather general public statements from the VCs. And the complaints allege—and I think probably have to allege—actual knowledge of the fraudulent scheme against the depositors. The reason is that, as a general rule, the plaintiff has to establish that the defendant owed them a duty to do or refrain from doing something before negligence liability will attach.
Of course, you have to file the lawsuit in order to potentially get to discovery and start subpoenaing documents and deposing witnesses. It’s not an unreasonable fishing expedition to undertake, but I think the narrative that the VCs were sloppy, rushed, or underinvested on their due dilligence is much more likely than the complaint’s theory that they knew about the depositor fraud and actively worked to conceal it until FTX did an IPO and they unloaded their shares.
(I certainly do not think anyone in EA knew about the fraudulent scheme against depositors either.)