Yeah, but it’s nothing new. VCs have been used for nefarious purposes for ages. For example, there are documentaries about how they’re often used by competing companies to buy up a company that’s foundering (sometimes due to the actions of said competitors), split off a few valuable assets to give to the competing company, and dump the rest onto taxpayers to deal with in bankruptcy.

So, sure, these are another example of how the VC process is being used nefariously against the original purpose of such organizations, but they aren’t small exceptions to the rule. The system was always designed to do these nefarious things under the guise of “investment”. Without an overhaul so that these organizations are legally required to show how they use their money so that both investors and the public are able to see it, it’s not corruption of a process, it’s standard use of a process designed to mask corruption.