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She largely defrauded idiots on the investor side, granted. But that's still not allowed. Even defrauding idiots is a crime.
by rsynnott 2y ago
She largely defrauded idiots on the investor side, granted. But that's still not allowed. Even defrauding idiots is a crime.
- codingbot3000 2y agoAgree. But the crypto racket seems to be on a roll as never before nonetheless.
- rsynnott 2y agoCrypto does seem to have carved out a "most laws don't apply to us" niche, and particularly in the US this seems like it'll get worse before it gets better. That hardly excuses Holmes, though.
- blitzar 2y agoThere is a different bar for regular joe investors and "Professional Investors" [0]. These were Professional Investors. [0] A professional investor is an individual or legal entity that possesses the experience, knowledge, and expertise necessary to make their own investment decisions and duly assess the risks associated with these decisions.
- rsynnott 2y agoAre you talking about accredited investors? In the US, the only criteria to be an accredited investor, more or less, is having a net worth of over a million or an income over 200k. The above looks a bit more like a European definition, though even there it's optimistic, and in practice "has lots of money" is good enough for accredited investor status in the EU as well. To be clear, most of the investors weren't VCs and things; they were, largely, individual rich idiots (or their family offices, at their direction). Theranos had trouble with real VCs, who wanted inconvenient things like audited accounts. The rules protecting accredited investors are indeed laxer than those protecting normal people, but it is _still not legal to defraud them_.