Not really sure what we can do to legally punish them but it's not just the offering ICO alone that already has a bad taste in our mouth, but these scam projects are what really affected the market. This is why STO's and IEO's invented to somehow protect us investors and at the same time, provide more liquidity. Binance are listing
promising coins that have real partnerships with existing big companies and not just done verbally, which can translate for the project to be serious/legit. The crypto community have already learned a lot over the past few years and has grown weary of what platforms and projects to trust.
Even if we try regulating it, there are still some projects that appears good initially, operate transparently and even list on big exchanges but along the line, developers and team may decide to get greedy and dump massively, hence abandoning the project.
The more reason why i think initial model offering is the best alternative we have right now.