higher risk means higher reward.
This is not about risk. Risk is the chance that you'll lose the spin of the roulette wheel. This is about the casino planting a magnet under the roulette wheel.
When you hire someone to clean your house and he steals your jewelery, people don't say that this was a risk you accepted when you hired someone to clean your house and that you knew a house cleaner might steal.
IMHO this is not a congruent argument. Pirate explained his business as market arbitrage and selling to people of 'influence'. I am not going to get into it here, but given his background in forex the detailed explanation made sense to me. It was very clear that it was a high risk investment that could go away, but not stealing, which are two different things.