Oh it gets better... Here's the SEC reasoning on why 29 was fraudulent:
At the time GAW Miners and Garza made, or Garza authorized, these statements, they knew or should have known that these statements were untrue. They knew or should have known that the profitability of virtual currency mining depended on many unforeseeable factors, including the market price of those virtual currencies, the cost of the electricity and cooling for the equipment, and the extent to which the speed of developments in computing technology made any equipment they owned obsolete. GAW Miners and Garza thus had no reasonable basis for these statements at the time they made or authorized them.
Really... because the profitability of mining a currency depends on unforeseeable factors? Of course then switch to a different currency. Bringing in electricity or cooling is entire debatable. With proper engineering, from a strictly theoretical purpose, you can get both for free (via lets say solar) or next to free given some initial investment and/or Geo-strategizing.
As far as the extent of computing tech, moore's law is still in play AND when (and it will) that threshold plateaus hit mining difficulty will also plateau as, whether it is part of current design or not, WHEN difficulty increases to the point that mining is far to expensive to maintain the block chain either a) the code base (bitcoin speaking that is) will be changed from the planned incremental increase in difficulty or b) a fork will be created eliminating the need for the unsustainable mining capacity in which case the original fork will most likely continue to exist due to dissenters and will need to implement a to continual survival.
So back the SEC claims, not only the babble spilled out the previous paragraph but guess what there are always alt coins.
Digitization is not exempt from Darwinism. The same theories that explain the extinction of many biological species throughout the ages certainly apply to the digital organism created by mankind.
So once again, trumped up charges by the SEC.