From the looks of it, his business is finished. This community is very well connected. He isn't selling fleamarket chinese knockoffs, he is selling high end knives and the people into that are enthusiasts and search around and talk about it. If you look at the site right now, everything is "sold", nothing up for sale.
Chances are, he was going to go out of business anyway. The fact that he ran several legit giveaways, and then ran a couple scams at the end (allegedly) is very telling. A few months ago I remember the posts on the FB page getting rather desperate about people signing up and using the service. I think what happened was this was a company that wasn't budgeted properly. When you start a company, you can't expect a profit within the first year or two. I think he did. I don't think he was getting the traffic in business he was expecting. The giveaways worked, but the money had dried up so he gambled with one of two faux giveaways to try to get the numbers up.
We've seen some similar situations with rather famous custom makers that have presold knives and taken payment without delivery. They aren't TRYING to rip people off, they have bills to pay, get desperate and make excuses to themselves that they'll finish their knives next, etc. It doesn't excuse the act, just like it doesn't excuse Knives Emporium's actions. But it is an easy trap for some people to fall in.
Did they get away with it? No, I'm fairly certain their business is ruined. And with the memory of this community if he tries to start a new company in the future, members will track down the information and expose him. As far as personal information, I doubt he'll use it for anything and you can eliminate the current database's entries by logging into your account on their site and putting facetious email/name/address info in.
-MJ
