[bahahah]

They won't likely see the money either way. If it was spent on development it is gone -- so if this a new company it will just file bankruptcy or dissolve. Washington state does not likely have a way to force restitution on a company in another state either.

True scammers will be long gone anyway, so this will only hurt people that want to try to build something via crowdfunding.

Washington state is now considered hostile to businesses that will use crowdfunding so you should probably not start these types of projects or businesses there.

Will be interesting if any companies will refuse backers from Washington.

More careful wording of backer reward commitments can likely get around such legal liabilities.

[benwilber0]

> Washington state is now considered hostile to businesses that will use crowdfunding

I think the WA AG is acting perfectly reasonably here and fully expect more states to follow suit. The CPA applies to crowdfunding campaigns as much as it applies to anything else.