It DID END BADLY. Hope the guy got his money looks like he only had about $2000 with them so not so bad. Right again I was.
Not sure if "the Guy" is me but it didn't end badly for me. I haven't traded with them since the end of last summer but I did still have some money with them which they just had frozen. Anyway, I get an email from them a few days ago that they are returning the money I had with them and sure enough it was in my bank today. So nothing went bad for me. Not even sure what happened to Lakestreet as Ive been out of the loop.