[joe_the_user]

There's a quandary here. If someone is, say, a medical equipment VC, they have to invest in technologies they can understand only in outline, since no one is going understand everything about them.

But finance is different in the sense that any investor has to understand things down to where the money is coming from. You correctly reason that "innovation" in finance is simply a system for gambling with other people's. That's indeed more or less fraud by your reasoning.

But the tricky part is that an investor in technology has to know where the substantial engineering technology ends and the insubstantial "financial technology" begins. It's OK not to understand the first but deadly, over time, not to understand the second. So the problem can get tricky despite the underlying situation being simple.