We don’t know the detail, but as you probably know, michaeljk1963, there is a variety of business tactics that could have protected and isolated whatever happened.
Having separate corporations around the new crowdfunded venture separate from the existing business, prevents a failure from cascading. You see this tactic used all the time, for instance if you have multiple rental buildings you do each with separate corporations to prevent a large liability decision bringing the whole thing down. You probably could tell us better, but this is generally viewed favorably by courts and is not a sham transaction. This arrangement allows for money to still flow between branches, as investments.
The bankruptcy process has been broken for a very long time. As Jeanne just pointed out in the post just before yours, the bankrupted Adoyo is no longer allowed to make money selling products they have. The green parts of a business gets killed, rather than protected, which is counter productive and destructive.
Startups need good lawyers.
Kickstarter investors of failed projects need good lawyers now too.