How do you know that he wasn’t capable of understanding those requirements? It seems just as possible that he consciously chose to ignore prudence in favor of easy profits.

In fact, it seems that he completely did understand the importance of things like separating customer funds between businesses given that FTX claimed to have rigorous procedures around this prior to their collapse. From the outside, it appears that he is trying to save his skin by pleading ignorance.

> He was clearly naive and not capable of understanding and implementing the full legal requirements of his business.

Why? Why was SBF naive versus knowing and not caring? He is an intelligent man.

If I invest in something that ends up being a fraud I should not just lose my investment but face criminal liability?

What

Lol, he knew exactly what he was doing. And the investors were just FOMO’ing into it.