The US Securities and Exchange Commission has charged the founder of decentralized Ethereum exchange EtherDelta with operating an unregistered exchange.
According to the SEC's order, EtherDelta is an online platform for secondary market trading of ERC20 tokens, a type of blockchain-based token commonly issued in Initial Coin Offerings. The order found that EtherDelta founder Zachary Coburn caused EtherDelta to operate as an unregistered national securities exchange.
"EtherDelta had both the user interface and underlying functionality of an online national securities exchange and was required to register with the SEC or qualify for an exemption," said Stephanie Avakian, Co-Director of the SEC's Enforcement Division.
We are witnessing a time of significant innovation in the securities markets with the use and application of distributed ledger technology," added Steven Peikin, co-director of the SEC's Enforcement Division. "But to protect investors, this innovation necessitates the SEC's thoughtful oversight of digital markets and enforcement of existing laws."
Coburn has agreed to pay $300,000 in disgorgement, along with $13,000 in prejudgment interest and a $75,000 penalty, though he has not admitted or denied the SEC's findings.
For comments and feedback contact: editorial@rttnews.com
Business News