Make a security knowing it's a security and then scramble to make it look like it's not a security; this is how the BRO do.
!PIMP
!PIZZA
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A security is any mutual financial endeavor with the expectation of profit based on someone else's labor/skill/knowledge. When they pay out anything tradeable, they are profit sharing and they have to register.
They know/knew this, said "fuck the rules" and took people's money anyway. It wouldn't/couldn't last.