I'm sure after putting up the cash you are handed some janky app worth nothing close to what you paid, much less his supposed investment. While maybe not being illegal, it was incredibly predatory. The 'entrepreneurs' weren't being asked the most basic questions about their business, and were clearly not financially in a place to invest the money he was demanding. Rather than helping them achieve an entrepreneurial dream, he is sucking up the limited money they have (perhaps even inviting them to take on debt) without any real hope of success.
It seems like every channel on Clubhouse is some version of exploitation, whether it's about crypto, your love life, or your money. I don't know how I would moderate that away if I was them, but it seems like the time to do it was several months ago, and now might be too late.