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I was kind of wondering when this would happen. For a very small investment you could mockup a slick iPhone gadget, make 10x your initial request of $100k and then take the money and run. Aside from the morality of it, I don't think there are many legal obstacles to this, especially if you made it seem like you were making a "good faith" effort up until you disappeared with the cash.

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Perhaps Kickstarter could insist that projects account for their spending on the project? e.g. if you've raised $100k, you'd better be able to show that you spent that $100k in ways that are related to the project, and not on a shiny new car. This would form part of the contract between project & funders and could open the way to lawsuits if the project couldn't demonstrate reasonable use of the cash.

The mere threat of future legal problems would (hopefully) keep Kickstarters more honest, and would reassure funders, making them more likely to fund more stuff.

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