Nov 9 – The U.S. Securities and Exchange Commission (SEC) has charged Zachary Coburn, Founder EtherDelta – A crypto token trading platform, for operating EtherDelta as an unregistered securities exchange.
EtherDelta served as a marketplace for trading ERC20 tokens, which allowed functions such as buying and selling digital assets through an order book and smart contracts based on the Ethereum Blockchain.
As stated by the SEC, EtherDelta’s users placed more than 3.6 million orders for tokens during their operational period of 18 months. Now these orders included tokens considered as securities by U.S. federal laws.
Also Most of the orders were executed after the DAO report released by the SEC in June 2017. Under the current law, EtherDelta was obliged to register in U.S. or to apply for an exemption; however, the SEC notes that the platform failed to do so.
According to the regulator, EtherDelta founder Coburn neither admitted nor denied the findings, but he consented to cooperate and to pay the state $300,000 in unlawful profits. Moreover, he agreed to pay $13,000 in prejudgment interest and a $75,000 penalty. The SEC also states that it would have imposed a greater fine if Coburn had failed to cooperate with the investigators.