I personally think they should abandon their ICO and try to find an alternative way to raise funds for their development. I would suggest the ONAM team looks into starting their own STO or trying to secure private investments.
Yes, you are right. But the money raised at the ICO is easy money, you can spend it on cars and traveling - and this will not be against the law.
I personally think thats what they are trying for. Atleast lots of private placement is coming on their way. Softcap is also not too far away.