Right. I am not a lawyer (writer here), but read this page (as called out in the article) about Rule 506(c). https://www.sec.gov/education/smallbusiness/exempt

Right. I am not a lawyer (writer here), but read this page (as called out in the article) about Rule 506(c). https://www.sec.gov/education/smallbusiness/exemptofferings/rule506c https://www.sec.gov/education/smallbusiness/exemptofferings/... The requirement they seem to follow is: "all purchasers in the offering are accredited investors and the issuer takes reasonable steps to verify purchasers’ accredited investor status" Purism argues that everyone must be an accredited investor; but they state they take no steps to verify anyone. They even say that it is impossible to comply with the law ("since there is no way for Purism to validate your accredited investor status"). Well, what is it then? Are they securities or not? If they aren't securities, why the accredited investor requirement? Are you instead going under Rule 504, which seems to prohibit anything publicly offered? If 504 doesn't work and you are ignoring a requirement for 506, is there some other section, or is it just (arguably) flat-out illegal? It doesn't take a lawyer to say that something's fishy. While the law is probably fuzzy on what that verification requires, Purism could at least just call people on the phone, and say, "hey, we need accredited investors, are you one? Do you fully understand what this means and what your obligations are?" And record the response for legal purposes.