This is incorrect. While it is not considered currency according to FINCEN, it falls under digital goods. I am not a lawyer so one should be consulted and a class action suit would be advisable, along with criminal prosecution.

He is bluffing with the libel suits as this is simply a scare tactic, and secondly, if there is any truth in the claims (of being a scammer), then there are no grounds for a libel suit. Keep in mind that this person completely lacks empathy for other people, and thus has no remorse for anyone but themselves. At some point, when cornered, will request mercy and paint themselves as a victim.