I think stories like these highlight the need for clearer (not necessarily more) regulations around contractor/subcontractor/client relationships and what happens when one of them goes tits up.
There were rampant issues in the fintech world that exploded when Synapse, a banking as a service provider, went bankrupt and their ledger didn't match what partner banks had in their accounts. End users were told "your deposits are FDIC insured", but in bankruptcy court the judge was sort of at a loss over how to rectify things - the banks weren't insolvent, and the FDIC (rightfully) said "hey, this isn't our problem, our regulated entities are in compliance". Looks like a similar situation happened here, where the contractors are both doing the "not it" thing.
I feel like a lot of tech innovation and "business process innovation" over the past 15 years was just ignoring regulations that were built up over decades, only discovering the reasons for those regulations when the tide went out and seeing that lots of companies had been pantsless the whole time.
There were rampant issues in the fintech world that exploded when Synapse, a banking as a service provider, went bankrupt and their ledger didn't match what partner banks had in their accounts. End users were told "your deposits are FDIC insured", but in bankruptcy court the judge was sort of at a loss over how to rectify things - the banks weren't insolvent, and the FDIC (rightfully) said "hey, this isn't our problem, our regulated entities are in compliance". Looks like a similar situation happened here, where the contractors are both doing the "not it" thing.
I feel like a lot of tech innovation and "business process innovation" over the past 15 years was just ignoring regulations that were built up over decades, only discovering the reasons for those regulations when the tide went out and seeing that lots of companies had been pantsless the whole time.