Arthur Cheong, CEO of DeFiance Capital, has criticized some Web3 startups for closing operations without notifying investors. Cheong expressed his dissatisfaction on social media, highlighting that many startups funded in 2021 and 2022 have executed "quiet exits," which he deems unacceptable. He insists that even in failure, companies should at least send an apology and thank investors. Cheong referenced a post discussing the flaws in the current venture capital model, such as lack of oversight and weak accounting fundamentals. The post suggests that in a bull market, founders might enrich themselves through high salaries and bonuses, using company funds for personal benefits, while investors face declining returns. Cheong concurs with these observations, emphasizing the need for ethical integrity among founders.