There's also the fact that you don't develop a corporate hierarchy as complicated as the FTX and Alameda clusters of companies (something like 130 companies), due to ignorance and naivety.
I saw one story where Chamath Palihapitiya said his due diligence team made very simple governance recommendations like “have a board” and “formalize your related-party transactions” and the response from FTX was literally “go fuck yourself”. Given the recent reporting around just how absolutely fucked their records were I can’t help but wonder what on earth they were handing over in response to DDQs? Was it garbage and people invested anyway? Or were they just making shit up whole cloth? Social Capital must have seen something to get their spidey senses tingling about the related-party situation.
