$121.79 -1.22%
ETH · 10w

EtherDelta Founder Charged by the SEC, Agrees to Pay Penalties

Zachary Coburn, the founder of EtherDelta has been charged by the SEC for running an unregistered token exchange EtherDelta operated for 18 months and managed 3.6 million orders for ERC20 tokens The commission issued the DOA 2017 report which classifies digital tokens as securities and requires exchanges to register

Zachary Coburn, the founder of EtherDelta has been formally charged by the Securities and Exchange Commission for running an unregistered digital token exchange. According to the November 8th press release by the SEC, EtherDelta was not registered with the national securities commission and thus, was unlawful.

Up until now, EtherDelta operated as a decentralized exchange (DEX) for ERC20 tokens. While these activities were going on, Coborn filed to register the exchange.

3.6 million orders

EtherDelta acts as a decentralized marketplace that advertised for both buyers and sellers of digital assets by using an order book which showed existing order and smart contacts. The platform was run on Ethereum.

Trades were facilitated on EtherDelta which managed the messages between buyers and sellers, manging terms and conditions, executed the trades and recorded them on the Blockchain.

It ran for about 18 months and completed 3.6 million orders for ERC20 tokens. Even after the SEC issued the DOA 2017 report which formally classified digital assets and securities and required that platforms that dealt in them be registered, EtherDelta continued to trade in these tokens without registering them.

“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.

Etherdelta founder has agreed to pay penalties

While the Blockchain industry has great potential and projects based on Blockchain have created many new opportunitie...

Continue on
Recent news
ETH -1.22% · · 1h

Updates on FOAM

Dear Members of the FOAM Community, I am writing with an update on the recent work done by the Foamspace team and plans for the coming year. While we are still formalizing a roadmap for publication, ...
ETH -1.22% · · 4h


IFX EXPO Asia kicks off at the Hong Kong Convention Centre next week and we’re proud to announce that OAX will be a part of the event. Our General Manager, Amanda Liu, has been invited by the…
ETH -1.22% · · 9h

Everything You Need To Know About AraCon

The countdown is on! With just 3 days left before registration closes and less than two weeks until the event kicks off, AraCon is officially right around the corner
ETH -1.22% · · 16h

Earn real rewards with Lympo referral programs

Imagine getting paid for walking or running, that is, essentially, just for staying fit and healthy. Sounds crazy, right? Lympo is a free app for everyone wishing to live a healthier and wealthier…