I can't comment on the specifics of this conflict but I liked these thoughts from reddit thread

"Unqualified investors(anyone that isn't a professional VC or angel investor) should probably avoid all ICO's altogether.

There may be a few ICO's that will generate money, for investors but most won't, they will be gambling vessels propped up to unrealistic values, until people start learning most of the ICO's are actually worthless.

Sure maybe a lot of people who start ICO's have genuine good ideas, but over times their intentions might get corrupted because they realize that this huge pot of money is actually theirs and the investor has no real legal rights. So many owners of ICO's will pay themselves generous wages while doing very little, or simply run of with the money, depending if they want to keep up appearances or not."