
A recent scandal has emerged in the cryptocurrency sector, involving a Polychain executive who allegedly accepted secret 'advisor tokens' from a project in exchange for favorable treatment. This incident highlights a broader issue within the crypto venture capital (VC) industry, where quid pro quo arrangements are reportedly common. VCs often act as 'secret advisors' for the companies they invest in, receiving tokens for their support without public disclosure. A deal-flow manager at Polychain is accused of taking a bribe to secure an allocation. This practice has raised concerns about corruption and ethical violations. Critics argue that such arrangements undermine fiduciary responsibilities and erode trust in the venture capital ecosystem.
There's something truly horrifying about VC partners getting kickbacks to have their firms invest into projects It's 10x more horrifying when you take into account how the majority of venture capital in crypto is reliant on these larger firms for DD and just ape whatever they…
This is absolutely absurd, unethical and a complete violation of fiduciary responsibility if true. I’ve seen public comments and received many private questions about this. No. This is not how venture capital works. This is an abomination if true. https://t.co/oaWnqHqmgi
Gross “Top Crypto VC Says Ex-General Partner Made Undisclosed Side Deal With Portfolio Company”—https://t.co/GjiR9rkCn0
