ICOs have been all the rage lately, with money being thrown at them faster than they can come up with viable products.
As with anything, the more money being thrown at a sector, the more ripe it is for fraud.
Which is exactly what is going on right now in the ICO sector.
This is bad enough anywhere, but it could have dire consequences for the ones running these types of scams in China.
China plays by a different set of rules.
Although rare in the rest of the world, China has been known to execute people for committing white collar crimes. Specifically those running illegal fund raising schemes.
Which is basically what an ICO is, a fund raising mechanism.
According to Chinese law:
Any kind of public fundraising that does not fall under the guidelines set by the 1997 China Criminal Law would be considered illegal.
Judging by this definition it is quite possible that if an ICO doesn't fall under those guidelines, it would be considered illegal. If the organizers of said ICO are caught, they could be put to death.
How likely is it to actually be put to death?
No one really knows for sure as China doesn't readily give out that kind of information.
However, we do know that in 2013 Zeng Chengjie (pictured above) was put to death by lethal injection for his white collar crimes. For the severity and far reaching nature of his transgressions, he was nicknamed "China's Bernie Madoff".
His specific crimes were said to be illegal fundraising and financial fraud.
There is that "illegal fundraising" phrase again...
Some rough estimates:
According to the Cornell Center (no relation to 
However, judging by estimates received from numerous human rights organizations, it can be estimated that China carries out thousands of executions per year. Which is more than every other country on the planet, combined.
How many of those are because of white collar crimes?
No one can say for sure, but we do know they are more than willing to use that form of punishment.
Therefore, anyone that wants to commit financial fraud is already playing with fire, but doing so in a place like China, really is putting one's own life at risk.
Stay safe my friends!
Sources:
https://cointelegraph.com/news/chinese-exchanges-issue-ico-warnings-amid-death-penalty-panic
http://www.bitsonline.com/china-death-penalty-ico-traders/
http://www.deathpenaltyworldwide.org/
Image Sources:
http://www.bitsonline.com/china-death-penalty-ico-traders/
http://www.fubiz.net/2012/03/01/playing-with-fire/