So the entirety of BlockFi's "research" and "evaluation" as to whether they should lend over a billion dollars to another company consisted of "Hey, we can totally trust you, right?", without any independent audits, examination, or verification of any sort whatsoever. So essentially FTX said "You can totally trust us, bro", and BlockFi said "OK, here's a billion dollars of our customers' money!"
many large investors failed that verification check. simply because they knew another institution/influencer was promoting FTX, they think the first,second and third one vetted and verified FTX so the fourth didnt have to. yet first second and third didnt either..
EG FTX promoted shark tank presenter, football millionaire and others as promoters.. so real investors thought it must be legit.
if companies CFO's do less research and value surveys compared to lets say the surveys needed for just a $100k mortgage.. when investing millions then those companies CFO's need to be challenged and maybe even taken to court themselves as they put their own business in jeopardy