Meh YC backs a lot of scams masquerading as businesses. This period of easy money and wealth concentration has fostered much in the way of misallocation of capital. Y-Combinator exists to make its owners money. Their primary concern is bloody Benjamins, not morality and the public interest.
>>former+(OP)
As I've said elsewhere, having dealt with them and seen who they invest in, morality does not seem to be an important aspect of YC investments.