Forget ICO, now ico is almost synonymous with scam, it has been eliminated, there will be a better model to replace it,such as STO.
This is a decentralized space and while that gives control to the individuals involved it also gives them freedom to develop projects without efficient auditing and regulations.
There is no surprise that it is being used for illegal and fraudulent activities.
The key word is
almost. While majority of projects are scam projects. There are of course a handful of quality projects out there.
You just need the tools and skills to identify them.