Just got off the phone with a SEC specialist. He said that the SEC is looking into Bitcoin security exchanges, and if they are unregistered and offering unlicensed securities then they are violating the law and has advised me to not invest. I asked him about if being virtual and for educational purposes covers it and he said he cannot say.

Oh and he asked me if I have lost any money in anything Ethan Burnside offered, I take that as burnside here

If you don't believe me ask them here https://tts.sec.gov/oiea/QuestionsAndComments.html they called me back.