Of course the scammers profited, that's the point of the scam. But they didn't pay everyone back. Worthless made-up tokens are worthless. They should have paid back those dollars that they promised - should be easy since they were not in financial trouble? But they didn't. Therefore scam. Authorities tend to be interested in large scams.
Just throw him on ignore like I did, problem solved.
Kinda stupid to keep on defending it after it's collapsed with all the lawsuits going on. Im not sure he understands how bad it is to accrue a ton of neg trust, especially now that it's so much harder to rank up.