there have been issues around this, insofar as how much the VC investors - who are part-owners, remember - are involved in the running of the company.

When Telegram did its failed ICO, a pile of the VCs who bought tokens behaved with sufficient involvement that the SEC deemed them underwriters, i.e. partially responsible for the offering.

So how much business help did Y Combinator offer this particular blatant Ponzi? Looking forward to YC and PG's comments on this.