US SEC Fines EtherDelta Founder for Operating Unregistered Securities Exchange
The U.S. Securities and Exchange Commission (SEC) charged founder of crypto token trading platform EtherDelta Zachary Coburn with operating an unregistered securities exchange.
EtherDelta acts as a secondary market for trading ERC-20 tokens and has conducted over 3.6 million trades over the last 18 months. The SEC deemed the ethereum tokens exchanged in the marketplace to be "digital asset securities" that fall under its regulatory jurisdiction, and noted that EtherDelta did not register as an exchange or file an exemption.
"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." ~ SEC Division of Enforcement co-director Stephanie Avakian
Coburn has already settled the charges by paying $300,000 in disgorgement, $13,000 in pre-judgement interest and a $75,000 penalty.
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