> Because no one wanted to look at it. Softbank, Sequoia and many others that would have had access didn't do their job.
According to John J. Ray on the 17th of November in filings to the U.S. Bankruptcy Court [1]:
"The audit firm for the WRS Silo, Armanio LLP, was a firm with which I am professionally familiar. The audit firm for the Dotcom Silo was Prager Metis, a firm with which I am not familiar and whose website indicates that they are the 'first-ever CPA firm to officially open its Metaverse headquarters in the metaverse platform Decentraland'
56. I have substantial concerns as to the information presented in these audited financial statements, especially with respect to the Dotcom Silo. As a practical matter, I do not believe it appropriate for stakeholders or the Court to rely on audited financial statements as a reliable indication of the financial circumstances of these Silos.
57. The Debtors have not yet been able to locate any audited financial statements with respect to the Alameda Silo or the Ventures Silo."
That isn't to say that the behavior of Softbank et al isn't questionable. They probably knew very well that things looked fishy, but also probably knew that they would likely see very handsome returns in the short-term.
