“We always knew this thing had an expiration date,” (Hulio) told the friend"

This was clearly the plan all along. Such companies live and die by their low profiles. Was probably not the founders' first such company nor will it be their last.

Next step will be to close up, take the contacts, clients, capital, the lessons learned and the cream of the staff to whatever mercenary, unethical piece of crap they make next.

This is why killing the industry as a whole is so important. It'll mean going after the owners, suppliers and employees/contractors with naming/shaming, coordinated sanctions, criminal charges, designated persons lists etc. until their reputations are trash. No bank would fund it, no parters would supply it and no one with any talent would ever contemplate such a catastrophic career move in future.