Someone did the same thing during the dotcom bubble with Microsoft's media player. They pretended to have a new, revolutionary media player technology (which was actually just a skin), and raised ~$18m on the back of that. It all got vaporized, there never was a real product underneath.

I wouldn't chalk this particular instance up to anything more than loose capital ending up in fraudster hands, as occasionally happens when it's sloshing around to such a degree as it is these days.