You are right to ask. Nothing in this story, or any of the other reporting would indicate a lack of basic ethics.

What the story indicates is more like a set of character flaws. Hubris, and a belief that since he is so smart at one aspect of running the fund, picking the stocks, that he's automatically good enough at the other parts, like risk management. This is a blind spot, but not a crime.

I'm no big fan of EA and do agree that EA can be a "yellow flag" for worse stuff, as some have commented here. But more commonly, it's an indicator for these sorts of character traits. A fetishization of the quantitative model without a practical sense for real world tactics and experience, or something along those lines.

(And then sometimes they use it to justify actual crimes. But that is where SA diverges sharply from FTX, and we should be super clear about that distinction. This was an error and a setback, not a crime.)