Then he should file a complaint with the regulators. Knowingly participating in and profiting from a fraud isn’t something good, or simply law-abiding, people do. Absent such a report, you are posting unsubstantiated rumours.
I'm not sure what there was to report? My opinion was that the people working on it seemed legit up to that point, but it ran out of money and sold to a set of people who didn't care about the orginal team and more or less got rid of them. There is nothing wrong with that. But would you get rid of the people who built the sophsticated operation you just bought? That seemed questionable.
