Did they commit a crime? This is not a trolling question. There is no doubt in my mind they defrauded their investors.

But they are not a bank and are not subject to those regulations. IIUC, their terms of service are written in such a way that they became the legal owner of crypto deposited with them.

I am no lawyer and certainly I think the founder deserves to go to jail for running what seems to me like a naked Ponzi scheme, but to charge the guy with a crime you need to satisfy certain legal definitions.

Probably this is something which just takes time but it may take time because the prosecutor will need a legal theory? I would love to see comments from a lawyer about this.