This assumes it is possible to create such a bot. There is no indication that such a bot is possible. This is exactly my issue. All the disaster scenarios require some event that is not clear that an AGI could accomplish.
Huh? Do you think it's impossible to create a bot that profits from trading various markets? It's been done many times, so obviously, it's possible. There are already bots that use LLMs to trade based on SEC filings, etc.
Trading bots obviously exist. Can you build one that scales profits infinitely (as suggested above)? I would be very, very skeptical that is even possible. At some scale, trading edges stop working simply because market efficiencies kick in. Could you make a bunch of money in the market with an AGI? Possibly. Could you wreck the financial system because the AGI figures out some trading strategy? I have serious doubts.
But that's the thing - AGI in theory will be able to constantly change the trading strategy. It will not figure out some trading strategy it will figure out all the strategies and how to apply it and what will be the consequences with how big of a probability. The only other thing capable of outsmart it will be another AGI and nothing else will come even remotely close.
You seem to think there is a lot more alpha here than actually exists.