> Investors losing their skin? That's all risk/reward. They took big risk for big reward but lost.
No, it's not OK and it's not all risk/reward. The risk is whether the product can succeed and be better than others' products/services - not whether the company you're investing in is a fraud - that's what the legal system tries to prevent.
Investors losing their skin? That's all risk/reward. They took big risk for big reward but lost.