Yeah recently China has been really strict about crypto currency, no more ICO can be launched until a further notice and Bitcoin future seems a bit unsure, actually the government want to try to regulate it, but seems like hasn't found the key, but the situation for Bitcoin in China is not really good
If you correctly check then China wanted bitcoin should be clear with all scams and for that their should be some regulation so that this scam ICO should not ruin the bitcoin users and create bad name for crypto currecy. So i think after the regulation with some time the price will rock back high.