That's the biggest fear of investors, but I hope it will not happen, ETH has already progress and hearing that kind of bad news will only make ETH to go dump again and I don't know if it will be able to survive, if that's the case then we should all invest in bitcoin.

People say ETH is scam but look at ETH now. I don't know if they have some violation during the ICO but ETH has live up until now and I'm sure Vitalik and his crew are pretty much aware of this regulatory risk, so they'll find a way to solve whatever problems will come.