SEC charges founder of EtherDelta with operating an unregistered exchange

Regulation • November 8, 2018, 11:26AM EST
Published 1 hour earlier on
UPDATED: November 8, 2018, 4:08PM EST
The Block

According to CoinDesk, the SEC is charging the founder of EtherDelta, Zachary Coburn, with operating an unregistered exchange. EtherDelta is a decentralized exchange for trading ERC20 tokens. According to the SEC, it is the agency's "first enforcement action based on findings that such a platform operated as an unregistered national securities exchange." Furthermore, the SEC states that EtherDelta "has executed more than 3.6 million orders ... including tokens that are securities under the federal securities laws" over the past 18 months. Zachary Coburn agreed to pay $300K in disgorgement plus $13K in prejudgment interest and a $75K penalty, without admitting or denying the SEC's findings. (Source: CoinDesk)

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Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi

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