It's not as if he was doing it under the wraps or something. He did it in full public glare so creditors (and equity investors) knew exactly what they were getting into.
If that's the case and he isn't under legal risk then he hit a damn gray hat gold mine. A fool and his money. Idk if it was worth his reputation and company being completely destroyed but many people have risked their (literal) freedom for much much less.
