This reminds me of Forex Peace Army for Forex Traders. Since its inception it has proved to be highly effective in sanctioning erring brokers and making sure traders get justice. But that is a regulated market, I mean forex trading. Crypto industry is not regulated and it kind of throws out that question of, "HOW?" How are you going to ensure that fraudulent teams and developers get punished since we sometimes hardly even know the identities of these developers.
Money transmitter and unregistered securities are a common basis for prosecution and not just via the US SEC. Most ERC-20 based ICO have no utility during token sale and it often takes up to a year for those developing to have anything to show for it. Since it has no utility, it isn't that much of a stretch to argue security. Besides, most don't shy away from promising "profits" and calling it an "investment" especially through their PRs and social media