I would actually argue the blame goes to governments for not enforcing their laws. There will always be scummy founders who create criminal enterprises and scummy VCs who invest in them - but governments need to make sure they aren't financially rewarded for it.
I agree with this to an extent, but expecting everyone to be committing crimes until caught would put an insane strain on the justice system and would basically collapse society. A lot of our society is still built on trust and works only because the majority of people aren't malicious. This used to work fine until VC and the whole "startup" mentality made breaking laws a routine and respectable thing.
Stop investing in nakedly criminal schemes.