I think it's more likely that the more sophisticated investors knew there was a lot of handwaving going on and they thought they'd get through the exits with pr

I think it's more likely that the more sophisticated investors knew there was a lot of handwaving going on and they thought they'd get through the exits with principal+profit before they became clogged. Sometimes people are known to just not ask if they think the details are odious and they want to maintain plausible deniability about knowledge of source of the profits.