A press release published today by the SEC clarifies the charges:
An SEC investigation found that Erik T. Voorhees published prospectuses on the Internet and actively solicited investors to buy shares in SatoshiDICE and FeedZeBirds. But he failed to register the offerings with the SEC as required under the federal securities laws. Investors paid for their shares using Bitcoin, a virtual currency that can be used to purchase real-world goods and services and exchanged for fiat currencies on certain online exchanges. The profits ultimately earned by Voorhees through the unregistered offerings totaled more than $15,000.
Although Voorhees made quite a bit of money from the two IPOs, the SEC settlement reached with Voorhees seems quite small. In addition to agreeing to a five-year ban from making new bitcoin security offerings, Voorhees turned over nearly $16,000 in profits and paid a penalty of $35,000.