There are legal definitions of negligence. IANAL, but I'd imagine that what you're describing would meet those definitions. Investment decisions aren't as easy

There are legal definitions of negligence. IANAL, but I'd imagine that what you're describing would meet those definitions. Investment decisions aren't as easy to diagnose because there's a chance of upside. If FTX didn't end up as a scam, you stand to gain a LOT of money. The same can't be said of putting your only copy of a movie on a crappy SD card. In addition, you could make the argument that the chances of FTX being a scam were priced in. That is, you're buying stock that accounts for the scam chances.