Regardless whether this company or others have violated some specific securities law, I'm concerned about the broader issue of whether these regulators are tryi

Regardless whether this company or others have violated some specific securities law, I'm concerned about the broader issue of whether these regulators are trying to "regulate after the fact" about a new, emerging area. In principle, I think it should be legal for innovations like crypto-currencies to exist even if (or especially if) they are competitive alternatives offering advantages over sovereign fiat currencies. When it comes to currency, the government is the ultimate monopoly incumbent. Obviously, there's a risk government financial regulators aren't entirely unbiased in their viewpoint on a technology which may be disruptive to the government's own 'business model'. That there are some bad actors exploiting the crypto boom is unsurprising and should be dealt with, while ensuring we don't suppress the sometimes chaotic evolution of new innovations. (Note: I say not as a crypto defender but as someone who carefully considered personally buying into crypto over ten years ago and chose not to because it was (and still is) IMHO volatile and in the process of being figured out.)