An online fundraising attempt by a Chinese media startup company has triggered widespread controversies over possible violation of Chinese securities laws.

The company, Make.V, raised about 12 million yuan ($1.9 million) from 1,191 purchasers who bought membership cards between Jan 9 and Feb 3 on Taobao, one of China's largest e-commerce platforms.

On Tuesday, the website urged Make.V to stop selling the membership card because it violated national laws and regulations, according to Zhao Nige from Taobao's public relations department.