The Research Of Risk Investors' Protection In Equity Crowdfunding To Avoid Fund-raising Fraud

Equity crowdfunding,it's a concerned issue to protect investors,especially when investors encounter fraud and how to obtain an effective remedy.It will take criminal sanctions for financial fraudster and returned back the illegal property to the victims in accordance with current criminal law,while victim also can bring criminal incidental civil action to fraudster.In practice,however,the fraud scammers often squander property after deception.At present,if Equity crowdfunding websites don't have intentional acts of fraud commonly,the websites don't need to take responsibility for the loss,which makes the loss of the victim's difficult to get effective relief.However,in reality,crowdfunding websites and lead investor should also take some responsibilities to some extent.Crowdfunding websites will reduce entrance standard for the investors to meet maximize profit,which won't help financer to gather fund impartially.The investment material submitted by investors will not receive a strict censorship.The lead investor will make use of his advantage to introduce a good market-prospect project to the common investors,which will affect the judgment of investors invisibly.In view of this,the paper will suggest that when investors won't remedy the loss of fund-raising fraud in accordance with current law,the investors will have the priority to receive compensation from crowdfunding websites and lead investors.Meanwhile,the crowdfunding websites and lead investors also have the right of recourse to the fraudsters in order to balance the protection and development of the industry.