That person committed fraud. My point wasn't even about cryptocurrency or DeFi.

Here's a simplified hypothetical example to help you understand the legal nuance: I offer all of my money to the first person that can solve 5x5, and I errantly believe that it's a difficult problem to solve.

Can you provide a more real-world example? I don't understand what point you are making, if it isn't about making money via cryptocurrency. When you say "bad contracts", I assume you are talking about smart contracts. Is that not the case?