yes you are right it is the worst possibility they will do and I hope you can avoid the ico program that tells you like that, because the cryptocurrency should be confidential privacy of the user there should be nothing to know if you submit a KYC like that will make yourself you are threatened because your identity can be used for criminal acts like that.
This is what I'm seeing as well, many people are avoiding the projects that ask for them to go through KYC and in my opinion it makes complete sense, cryptocurrencies are supposed to give you some level of anonymity and the regulations put in place are trying to take that away from their users and I really think it's not fair and that we should not allow this anymore.