You are not on trial here, Im not a prosecutor, let alone a judge, but I do want to respond to this:
My due diligence was below the standards of traditional security issuance. It was far, far above the standards of the Bitcoin market at the time,
That, I am more than willing to believe. Moreover, its not like that standard has gone up since, you are certainly not alone making this mistake. Just about every bitcoin related asset issuer (and their "helpers", PT-operators, exchange operators, "pr managers", "ipo managers" and whatever) now and in the past have serious legal liabilities and most still dont seem to grasp that. I just hope people begin realizing this is no game.
which is what I measured myself against.
Possibly your worst mistake ?