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.
I agree most of the ICO especially today are all scams and a lot of legit ICO's cannot attract investors anymore.
Investors are already tired of getting their money scam by the Team of scammed ICO's like my self I already invested in a lot of ICOs and most of them are already dead token in the market I think i would rather just put my money in a cryptocurrency like bitcoin investment or an altcoin investment rather than investing my money or bitcoin in an ICO that could potentially just a scam.
A lot of people surely are not interested in investing in ICO because it already lost its credibility and lost to gain profit in a project like this i think it is risky and also dangerous to invest especially this days but still we could easily recognized some legitimate companies that are running an ICO that surely that going to be a scam but potentially becoming a dead coin in the future.