Hi Doog,
Are you going to be selling your website/code? Surely there would be willing bidders.
Give the guy a break. The law is brand new, and until there are prosecutions under it, no one knows how it will be interpreted. They clearly felt that it was better to return the investors money now, and go on a clean sabbatical, than to risk the government making a test case out of them.
I am sure they are consulting with their lawyers about how to proceed.
I doubt he is ready for a fire sale.