The Crypto-Kingdom game founded and run by rpietila (forum profile
link) started as a legitimate fantasy role playing game with a rich economic model and an in-game currency fully-backed by real crypto (XMR).
However, it was recently turned into a fraudulent fractional reserve scam when rpietila decided to create in-game tokens for himself without depositing, and further being unwilling or unable to pay the resulting debts incurred by the game and himself.
It seems like he was scamming. I doubt Poloniex had anything to do with it other than possibly being a scapegoat or, maybe they responded to a law enforcement order, freezing his funds because they were stolen in the first place?