This happened because the ICO market is no matter how regulated. Ie no one is responsible. And since money appeared in this area, scammers also appeared automatically.
Fraudsters have always been, are and will be in any industry. Every day, their tricks are becoming more sophisticated. Therefore it is necessary to be very careful and circumspect.Ideally, this system should look like this: the investor invests in the project and sees where the money is spent. If the project does not fulfill its obligations, the investor can return his money immediately. Thus, there will be more confidence in the ICO.
Unfortunately the system does not work that way otherwise nobody will have any reason to complain about loss or been scammed by fraudsters, everyone will be confident enough to invest in a potentially looking project, but in reality, only few of this ico's are genuine enough to do a refund once the project could not achieve the target amount, others just want to fill their pocket regardless of target was achieved or not.
It is a tough place to be
Why do you think that the system does not work like this? Its just that no one has tried to raise funds under such conditions as it obliges projects to fulfill their promises