escrowing for himself, but he didnt rip anyone off right?
That depends.
Taking money for the express purpose of protecting goods, and then offering no protection at all could be considered ripping people off. Why was that extra money paid if it wasn't needed?
I agree with this. If someone uses their alt, no protection is offered. Same as sending first, right? If they wanted to send first or trusted the buyer or seller they would have just done so and no escrow would have been needed.