As it was organized, it was an illegal securities trading market.
Oh and even if we cared what some gang of thugs thought about his company, I fail to see how his company could have possibly fit the definition of a securities trading market when there was no money ever involved in what this company did.
I mean unless bitcoins somehow recently became money legally speaking, I don't know what the fuck you are taking about.
The securities themselves are regulated, you could trade them for pogs and pinecones and it wouldn't matter.