He wasn't very smart. He saw Bitcoin in a bear market so he sold it and bought an altcoin. -50% for bitcoin usually means -60% or more for altcoins and that includes ETH.
Another thing that surprised me about this read was that he only got 125 days in jail for drugging and nearly killing his father, stealing $400K, and leaving his father undiscovered for days.
We don't know what his father said in court. Maybe he did not want his son to be punished too severely, maybe told the story of his son being an addict.
What I don't understand about the case is that it sounds like they made the investment together, so why didn't his father just split it in 1/2 and let the son do whatever he wanted with it? Why hold someone else's money from them? I'd say there's definitely more than meets the eye to this story. No less shocking to not have all the details though.
We don't know if the investment was 50/50. It was 100k, but maybe most of it belonged to the father and the son had a part of profits because it was his idea...
His father probably knew that the money would be spent on drugs so he told Liam to stop taking or go to rehab and then ask for the money. I'd probably do the same, even if it 50% was his money. I wouldn't want to live with the thought that he got the money and gave it all to some dealer.