Okay so I will play the Devils advocate here. They have good intentions and basically shrug off bad publicity and continue with their project. Then SEC step in

Okay so I will play the Devils advocate here. They have good intentions and basically shrug off bad publicity and continue with their project. Then SEC step in shutting them down and bankrupting them before even charges were filled or they had their chance to defend themselves. Now moving forward months/years later they lack of funds or bad publicity made it they are forced to go down. So yeah in such scenario public and SEC will always be correct it was a scam :) every single time - just cut off founders hands, throw a fine, maybe jail time. Im sure its hard to meet potential business partners, make presentations or sales, when you behind bars.