I am curious to know why more people didn't try to warn others about entrusting TF with such large amounts of money if it was so obvious that TF was such bad news.
He was able to game DefaultTrust early on when the trust system came out. Anyone who attempted to question his trustworthiness was given a negative rating by TF and his friends from coinchat and their concerns were ignored by everyone due to the rating.
That sounds somewhat familiar to what happened with someone who was recently removed from level 1 default trust, although the use of negative ratings was not used. Massive amounts of positive ratings were used though.