The problem with this explanation is that there is a very clear delineation here between not-fraud and fraud. It is the difference between not touching customer deposits and touching them. Your explanation doesn’t dispute that they were knowingly and intentionally touching customer deposits. In that case, it is indisputably intentional, outright fraud. The only thing left to discuss is whether they knew the extent of the fraud or how risky it was.
I don’t think it was ill-intentioned based on SBF’s moral compass. He just had the belief, “I will pass a small amount of risk onto our customers, tell some small lies, and this will allow us to make more money for charity. This is net positive for the world.” Then the risks mounted, the web of lies became more complicated to navigate, and it just snowballed from there.
The problem with this explanation is that there is a very clear delineation here between not-fraud and fraud. It is the difference between not touching customer deposits and touching them. Your explanation doesn’t dispute that they were knowingly and intentionally touching customer deposits. In that case, it is indisputably intentional, outright fraud. The only thing left to discuss is whether they knew the extent of the fraud or how risky it was.
I don’t think it was ill-intentioned based on SBF’s moral compass. He just had the belief, “I will pass a small amount of risk onto our customers, tell some small lies, and this will allow us to make more money for charity. This is net positive for the world.” Then the risks mounted, the web of lies became more complicated to navigate, and it just snowballed from there.