The ICO is called "Blockvest" and last month they were ordered to halt before they really even began, via an emergency court order. The SEC press release explained their reasoning at the time:But today, the case was thrown out in court, the judge examining the case stated in his findings:the findings continue...The key word's above are 'at this stage' - because while the ICO had taken on investors, the "32 test investors" named were friends, family, and associates of the founder, which he had approached personally.Those 'test investors' then made the case that they didn't invest because he had promised huge returns, they invested basically just because they liked the guy, as explained in the finding:It's the fact that the ICO went no further than these '32 test investors' that saved them. Had the tokens been sold to the public, I think it's safe to say their violations would have been clear and indisputable.We're not looking at totally innocent people here. The initial press release from back when the SEC ordered them to halt, highlights some of the shady things they were attempting to pull off.Other claims included that they we're regularly undergoing 3rd party auditing - they weren't.But their defense revolved around stating his 'test investors' had never seen any of these false claims - therefore they couldn't have been misled by them. If none of the money he raised was the result of these misleading statements - then he never scammed investors.Airdrops appear to be in the clear. Other than the 'test investors' in this case, the ICO had only given out airdropped tokens to the public.Given that a 'security' by definition has to involve the risk of an investment being lost, the definition just cannot apply. When it comes to airdropped tokens, no investment was ever made - the tokens are simply being given away.So - airdropped tokens are outside of the SEC's regulatory oversight.The full court documents can be viewed here. -------