How to Do Fraud at a Futures Exchange – Bloomberg

But — as we have also discussed before — another important element of the alleged fraud is that FTX advertised good risk management and had bad risk management. Bankman-Fried has been going around on a weird media tour whose essential message is “I made mistakes and was careless, sorry,” presumably thinking that that is a defense to fraud charges, that “carelessness” and “fraud” are entirely separate categories. The SEC is having none of it…

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If you attract customers and investors by saying that you have good risk management, and then you lose their money, and then you say “oh sorry we had bad risk management,” that is not a defense against fraud charges! That is a confession!

Source: How to Do Fraud at a Futures Exchange – Bloomberg