Why should we, as bitcoiners show such great respect for regulations which are unfair to us and pushed by people who are corrupted by lobbyist money?
This is extremely unfair. What if the US gov says that every bitcoin miner is now illegal and should be destroyed by burning in a big pile, will Labrat just pile them all up and burn them?
for all we know, this is as much an IRS thing as a fincen/sec/whatever.
Here's some more sausage, because it's fun to make up stories:
March 15 is the business filing day in the US. Perhaps as he prepared taxes several things showed up.
His LLC equity far exceeds capital contributions. The money had to come from somewhere. It either came from sales of services/goods, sale of equity, or sale of bonds/loans. When LR started the company, he didn't want to sell fixed rate contracts (that eliminated sale of "services"), definitely didn't want to give up equity, so said he was selling "bonds." When accountants saw that, and saw that the bonds were not backed by anything nor where there any promissory notes or other necessary documents, they realized he was running outside of the rules of taxes. Tax lawyers may have told him that he really needs to sell something "concrete" or sell equity (but equity is very complicated and he losses control, but it would allow investors to maintain a growing share of the company).
I still think this may have nothing to do with bitcoin regulation but instead something to do with LR not knowing how to run a business or a security. He essentially promised people equity (a share in growing proceeds from the operation including investment of retained earnings), but declined to give them equity.
