> but it's created this effect of fraud-voyeurism that feels more tabloid than news; more celebrity gossip than business news.

Publicity giveth, publicity taketh away.

The schadenfreude does not happen in a vaccuum. Silicon Valley is addicted to the Steve Jobs messiah narrative, which is why they constantly deify 'personality' CEOs like Holmes, Neumann, Kalanick, Musk, even out and out frauds like SBF.

You do not see gloating about people getting busted for PPP fraud, because those are anonymous nobodies, that have not had a PR machine behind them pushing Galt-esque tales about their exploits and soapboxing their bizarre ideas about the future of millions, dreamed up from their NYC penthouse bubble.

If you dress someone up as Superman, there will be chuckles when he's found out to be a guy in muscle suit wearing his underwear on the outside.