Insist on quality legal counsel. ICO's do not have to violate the law (though many probably do). Competent counsel will be able to talk them through how to do this safely and explain the risks (which can include returning funds and criminal sanctions) if they try to take shortcuts. If you're not sure which firm to use, look at who sophisticated buyers are using (e.g., check SEC filings in their Edgar system and cross-ref with who's putting out literature on ICO's).