It's fraud.

The legal way to do this is to go bankrupt, launch app 2.0, and market it under a similar name.

They have a ponzi scheme business model, it failed. There's nothing legal about this; you make promises, you sign contracts, you have to live up to them.

We, the little insignificant people, have to afterall. The rules for us and them are the same.

You do this to a few people you lose your shirt, you do this to thousands or tens of thousands, that accousts the public trust. Management should be in handcuffs and in jail for this.

This news site is questionable for calling the business practice "questionable".