Just a quick addition that I think there’s been too much focus on VCs in these discussions. FTX was initially aimed as a platform for professional crypto traders. If FTX went down, these traders using the platform stood to lose a large fraction of their capital, and if they’d taken external money, to go out of business. So I think they did have very large incentives to understand the downside risks (unlike VCs who are mainly concerned with potential upside).
Just a quick addition that I think there’s been too much focus on VCs in these discussions. FTX was initially aimed as a platform for professional crypto traders. If FTX went down, these traders using the platform stood to lose a large fraction of their capital, and if they’d taken external money, to go out of business. So I think they did have very large incentives to understand the downside risks (unlike VCs who are mainly concerned with potential upside).