Yes but this is in a purely unregulated investment scheme. Everyone is going to end up guilty and the SEC would just seize everything and tell you to pound salt. I don't see how that helps. They'd have to build a case. It's not like some guy with a badge is going to go knock on his door and demand to see the bitcoin. They'd have to show some proof of wrong doing.
What? You mean CX did not register with the SEC?!
I, for one, was an unwitting investor and assumed that (1) because the business was run out of the USA, and (2) CX sold securities to US investors, that I would be afforded the protections of US securities law. The disclaimer about "virtual markets" and "nothing is real" has no effect: it was, in actuality, a real business that had assets, both physical and in BTC.
tbomb