Trying to help a Friend Honda B-Series... Whats the groups speculation?

My good friend has an EM1 Civic SI.  The car originally had a B16B (JDM Civic Type R) engine & transmission swap.  It had pieced together Turbo kit and made ~260whp.   Last fall, as he was driving to work, it started running on what he described as 3 cylinders after having a forged bottomend.   He removed the head and found a burnt valve.  Upon replacing the factory Type R valves with Stainless ones, and replacing the turbo with an ebay gt3582, the car is smoking worse than ever.   He's looking for suggestions, my best guess is that it is suffering from possibly broken ringland.  After the valve replacement, compression is 180 across the board +/-2psi.  I'll post videos in a few to show whats going on.  Any input will be appreciated.

Built with an eBay turbo? If it was one of those 250 buck Chinese turbos, that usually doesn't end well. I would suggest taking a look in the intake for oil.

Does he know what caused the valve to burn? They don't usually smoke without sufficient cause.

He did redo the valveseals to no avail.  The old turbo did have some slack, but it didnt smoke like this before whatever happened.  I'll tell him to signup and comment as he can provide more info.   The video he sent me shows what appears to be oil smoke coming out the breather coming from the block to the catchcan.  It redyno'd at 323whp before this episode.   I think its lower end specifically smoke out the breather, hes thinking its in the head. 

https://drive.google.com/file/d/1FUeiK3R6ljgXtsb5uLTzXCf5EVz6GJ-D/view?usp=drivesdk