This, in concert with the fact that the factory has agreed to give it a second shot, makes that scenario unlikely. For a factory owner in the business of scamming people, it would be far easier just to back out than suddenly start operating like a legitimate business once your scapegoat got busted.
Before commenting on this update
As we wrote at the start of this update, it contains some sensitive information and we're a little hesitant about posting it. In order to be able to post this publicly, we've got to set a few ground rules.
It's perfectly ok to post comments telling us that we were naive and too trusting. We're well aware.
Please do NOT post any comments or speculation about the identity of our account manager or factory or their motivations. Doing so may limit our ability to share details with you in the future. And we really want to be able to share details with you in the future.
"please do not speculate about motivations"
this is important. it makes the factory look bad, and in china that is an insult. doing that is not helpful for their relationship.
Presumably they decided what was in their backers interests vs fighting inside a foreign system that they'd likely have no say in.
(Also I suspect the upper limit sentence for this kind of crime may be the death penalty ... probably not for $100k of private money, but you never know)