Not discounting any of the other "Danger, Will Robinson!" comments, have you considered actually building the crazy thing they want?

At the moment, it sounds like you doing BS work and chasing your own tail.

It might be more interesting to change your attitude and jump on the delusional train (which a lot of startups are tbh), take the CEO more seriously and start building exactly what they want (or at least start prototyping). I don't think anyone will criticize you for taking the initiative and having a general positive attitude and start getting shit done.

It sounds like more fun than what you're currently doing, while you think of your options.

I wish I could get into details but that'd give away my identity. Unfortunately this isn't possible. I tried it for months but I was sabotaged continuously by management by doing things faster than I was told (yes they actually berated me for being "fast").

I'd recommend you get out of there in that situation. I've personally had something similar and it wasn't fun being caught in the wreckage when it turned out the CEO had lied about certain investments.

It doesn't sound like a scam to me. It seems there is intent to actually build something, just poor execution and bad management possibly?

I'd also be worried about a defamation suit if the OP misinterpreted the situation. I mean, if I were a CEO of a struggling "startup" and somebody went around claiming I was scamming investors only because I was doing a bad job at building products, I'd definitely be talking to my lawyers about defamation...