Yes that is true but this kind of news is kind of expired by now.
Those scammers have done it a year ago and they had been successful.
Now, there is not much people who really want to risk a lot to new projects and it is hurting them. But the old ones are still on going. Bitcoin is one example of it.
Not all will be affected by it anymore.
No, in fact, scam ICOs are still keeping on growing, and lots of disappointments are piling up on every investors and bounty hunters who supported those fake ICOs, the one thing we need for this is endurance, and patience, getting used to this scams is essential to find the right one that we are looking for, we may be look like a child finding a needle in the middle of bunch of straws, but once we find it, it is all worth it.
A lot of investors lost their money and this is not only because of scammers. Hype went through and after a while everyone saw the true state of affairs. There were so many interesting companies with potential but as it turned out - promising not to do it. Fraudsters have always been and will be, such is nature.
This is very common, people always ride the hype, having the thought that it will be successful until the end, and as usual, after their ICO, you would never see them listing their coin in an exchange, the next thing you knew, they all managed to put up a tough face to kill their conscience for the sake of money, they are not humans.