What a sad story , he should learn more about btc before buying tons of them
He didn't
lose anything. Tradefortress hosted a one-man
MyBitcoin style wallet service. Under cover of anonymity.
He copied
Bitcoinica's "ye olde email account hack" into Linode control panel password reset story for "plausible" (HA!) deniability.
He then stole the money.