Yeah I wouldn't make a deal like this with someone who is operating in bad faith... The cases I've seen of this are between public intellectuals with relatively modest amounts of money.
Well that's what I don't get, how is spending the money bad faith? Aren't they getting the money ahead of time so they can spend it before the world ends? If they have to keep the world-still-here money tied up in escrow I don't see why they would take the deal.