defrauding isn't synonymous with stealing- he did take the money under false pretenses. if I come to you for investment in my cool new startup that does distributed crypto machine learning ai for entertaining bored housecats on the blockchain and come back a year later having sextupled your investment in money from illegal arms smuggling, you've still been defrauded.
Except derivatives that almost sank the country for a few decades in 2008. For some reason selling derivative where it's incredibly difficult or impossible to know what securities they are derived from isn't fraud.
