I forget where I read it (venture deals, perhaps?) but it has always stuck with me: founder stock should vest! Nobody should get any equity whatsoever until and unless they've been working full time on the project for a year or more, founders included!

That wouldn't have solved the problem here, however, where blowing up the whole company is the best outcome, as you don't want to be in business with greedy, dishonest people. Building inside of a crab bucket is a huge waste of time.