Can someone who fell for the 7%+ return explain which part you got tricked by? Was it just not registering as red flag to offer such a high, risk free rate? Or did you believe it wasn’t risk free, but thought the risk of it turning into this situation too low/zero?

How much of the decision was based on using the claimed FDIC insurance as a limiter on the downside risk?

I don’t mean any antagonism by these questions, I’m personally curious what is the thought process to get involved with this investment option.