SEC Fined $500 Thousand The Founder Of Etherdelta

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Bitcoin News

SEC Fined $500 Thousand The Founder Of Etherdelta

The Commission on securities and stock exchanges of the USA (SEC) has fined the founder of a platform for trade of the tokens EtherDelta Zachary Coburn for transactions on the exchange of unregistered securities. This is stated in the official statement of the SEC.

EtherDelta is a platform for trading of the tokens of Ethereum ERC-20 standards and allows you to carry out exchange operations using Ethereum smart contracts.

According to the SEC, for more than 18 months, users of EtherDelta placed more than 3.6 million orders for the exchange of tokens, including those that were identified by the SEC as unregistered securities.

The regulator notes that most orders were executed after the “DAO report” published by the SEC in June 2017. The statement also stresses that EtherDelta could not check the regulator.

Coburn has not confirmed nor denied the SEC allegations, but agreed to the penalty to return the illicit profits of $300 thousand, $13 thousand, components of interest for the period prior to adjudication and a fine in the amount of $75 thousand.

The punishment could be much more severe if Coburn refused to cooperate with the investigation, the regulator says.

In October, the SEC launched a separate direction to regulate DLT and digital assets. A month later, it was reported that the regulator is preparing a guide that will determine in which cases the token becomes a security.

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