I’m laughing about the SEC because at the start of this crowdsale I brought it up and you were utterly clueless about it. You responded by creating your <$1 coin reward system and saying you weren’t aware of security compliance issues before then. Now suddenly you’re right in the know with your pals at the SEC from having talked to them on the phone prior to there being any complaints against you… If you can’t see how funny that is then god help you
This comment is revealing. Whilst terminology is important it does not make you legally compliant to change the term you use to characterise your crowdsale. What matters is the nuts and bolts. If it looks, smells and tastes like s security then guess what, that’s what they will define it as if they receive complaints about it.
Apart from that it would be dishonest to keep funds and not refund people now that you have changed direction. What possible justification could you have for refusing refunds? The money was invested in good faith, if you don’t refund every request you will deserve to have regulators come down on you like a ton of bricks imo. You should raise money honestly on the basis of what you are actually going to do. To say one thing and do another is dishonest, so your project should return money to the people you have deceived, that seems pretty simple and obvious. To refuse anyone would be outrageous.