Crowdfunding on the major sites like Kickstarter and Indiegogo has been relatively free of fraud. I believe this is because the crowd on the major sites does a commendable job of identifying bad apples and warning prospective funders away from them.
Government watchdogs like state attorneys general have not been required to bring very many investigations or lawsuits against fundraisers on the major sites. This relative dearth of fraud is remarkable given how popular crowdfunding has become.
However, the Washington State AG has initiated a lawsuit against Ed Nash and his company Altius Management. They raised money on Kickstarter to deliver a playing card game. They raised over $25,000, exceeding their goal. But they have not delivered and have ceased communicating with backers. "Kickstarter fraud: Washington files first consumer protection lawsuit involving crowdfunding," geekwire, May 1, 2014 http://www.geekwire.com/2014/attorney-general-asylum-playing-cards-crowdfunded-project/
Government watchdogs like state attorneys general have not been required to bring very many investigations or lawsuits against fundraisers on the major sites. This relative dearth of fraud is remarkable given how popular crowdfunding has become.
However, the Washington State AG has initiated a lawsuit against Ed Nash and his company Altius Management. They raised money on Kickstarter to deliver a playing card game. They raised over $25,000, exceeding their goal. But they have not delivered and have ceased communicating with backers. "Kickstarter fraud: Washington files first consumer protection lawsuit involving crowdfunding," geekwire, May 1, 2014 http://www.geekwire.com/2014/attorney-general-asylum-playing-cards-crowdfunded-project/
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