I mean, I would bet that we have seen worse, haven't we?

Bad management did for sure play a big role in this whole fiasco; the way many things weren't automated and had to be manually approved by the owner (although a lot could have changed in those 2 years we didn't talk) and bragging about hacking and saying people "stalk" him because it is known that he has some over 20ish BTC... And I would even stretch it a bit further. If you know you are not capable of running something, and still try/don't care about the outcome; aren't you in a way also scamming your users (when things indeed go south).

It's not related to this problem, but I do remember parts of what happened to their ICO. AFAIK, the investors never saw a cent out of it, and the idea back in the day was to re-launch the ico token but migrating to a different network and take once again money from investors. I never heard the end of it tho.