Couple that with the FOMO culture of 2021 and you have a recipe for minimal DD and maximum deal speed.
The bank has a fiduciary duty to it's account holders and share holders. Spending a bit more time and effort to make sure it doesn't loose money investing into a fraudulent operation is something it is legally obligated to do. Instead, the bank apparently chose to ignore red flags until the deal was already completed. As a shareholder AND account holder, I am flabbergasted that the bank just decided to piss away any money at all on such a deal.
Banks are supposed to be skeptical - that's sort of the whole point of banking. You don't just go and get a loan by asking nicely, you get a loan after the bank thoroughly investigates your work, your finances, etc...because they're on the hook to get a return on that loan.