That’s wild ; when even legal firms get involved in this kind of game, it shows how blurred the lines can get. In the end, the scam isn’t just about tech, it’s about how well it plays the system.
This works because most people don't read the long contracts they sign. If a company gets paid and runs away to another country, it's a clear fraud, but if the company works, goes to court, answers all the inquiries, it's very hard to prove that it's a fraud. Otherwise, the entire investment business can be closed on suspicion of fraud.