I can't stop loving people investing in non regulated markets expecting crazy profits and later crying for not getting all the warranties of regulated markets.
Get lost with the "I love the law so much anything not allowed by authority is bad" jerk off.
We are allowed to complain about whatever investment we want. Please note that legal investments that expect crazy profits also derail all the time.
One thing to take away from all of this is that we are going through an experience that many people have gone through with 100% legit investments, this is normal for investments as many do fail. That is why diversification is the number one rule, a rule I fucked over badly and lost.
My point to Mr "I love the law so much because all laws are right and just", this situation is less about unregulated securities and more about the normal course of action for startups. Most startups fail, fact.*
* But we can still get pissed that it went down and would like to understand why it failed or seems to be failing.