Re: Corporate incompetence? Or...
It seems to me to be a bit of a myth that regulations are magically the answer, or that these people are not subject to them. There are plenty of legal structures in place to deal with most of the fraud and dodgy practises in the crypto and other arenas. People do get found out and prosecuted.
The point to realise is that regulations, and laws are not "instant". They don't have the benefit of 20-20 hindsight, and on the whole we don't want to prevent all new economic activity (or any economic activity at all) until we have absolute proof it's all going to end well.
It can take months, years or even decades before the protective systems you think will protect us to actually respond. No amount of additional 'red tape' will increase that speed. In fact it will probably reduce it. This isn't greed - it's just the fact that when something new happens, we can't just respond to our knee jerk impulses and ban it.
On the other hand, the wider community has a responsibility to approach such schemes with scepticism and a critical eye. The reason FTX is such a big deal is not that it was a particularly clever or novel fraud - SBF has been convicted of very normal conspiracy and wire fraud charges. The big thing was that FTX was allowed to grow and gain a veneer of legitimacy in incredibly short time - magazine covers, high profile actors and politicians, sponsorship deals, and a significant part of the tech industry cheering them on and desperately pumping the idea that blockchain, crypto and digital assets are somehow different.
This isn't greed, it's just people being fearful of "not getting it", or being seen to be wrong when they point out the Emperor has no clothes. And sheer economic stupidity. When Musk claims that everyone owning a Tesla will be able to make back it's full cost in a year as a robotaxi, instead of pointing out that this is nonsense we have people breathlessly repeating that tech "changes everything".
If you want to ban something, ban stupidity. It's by far the biggest problem we're facing right now.