1. Charlie Shrem is in house arrest the last time I heard. Not jailed.
Maybe now - but first he was jailed. If a judge then decides house arrest is enough, it's a follow-up decision.
4. Investigations take time. You can't throw people in jail for suspicion.
Yes you can - look up in google: "jailed for suspected"/"suspicion". If you give a suspected bank robber time until the robbery is investigated, he gets the time to cover his tracks and the money plus himself will be gone.
5. Does throwing him in jail help the users to recoup their loss? Confiscating his assets and maybe a hefty fine on top seems a more apropriate action IMHO.
Neither does keeping him out of jail help the users recoup their loss. Neither does throwing a bank robber in jail help the bank recover its loss.
The reasons are different:
- he is unable to cover any of his tracks
- the public gets protected from any of his future intentions
- it scares off future criminals
- and a little thing called justice: People go to jail for much smaller amounts.