Kickstarter

One of the victims of an alleged crowdfunding scam says he’s not counting on getting his money back. But he’s glad Washington’s attorney general has filed a consumer protection lawsuit. It’s believed to be the first state action against a crowdfunding project sponsor.

Brad Lansford only lost $9, but he still feels burned. In 2012, he backed a Kickstarter project called Asylum Playing Cards.

Crowdfunding websites have grown rapidly as a way to raise money for creative ventures—everything from movies to scientific research, to clever inventions. You might have heard of Kickstarter, Indiegogo or Rockethub. It would be just a small leap to use those same platforms to sell shares in a startup. That's illegal right now, but maybe not for long.