November 09, 2018 | AtoZ Markets
In a press release issued Nov. 08, the U.S. Securities and Exchange Commission (SEC) has charged Zachary Coburn, the founder of crypto token trading platform EtherDelta, with operating an unauthorized securities exchange.
The SEC press release read that over 18 months of operation, EtherDelta's users placed more than 3.6 million orders for tokens, including ones that are considered securities by U.S. federal laws.
Most of the orders were executed after the DAO report the SEC had released in June 2017, as per the press release, and while under the current law EtherDelta is obliged to register in the U.S.A, or to apply for an exemption; the previously named platform failed to do.
EtherDelta’s founder Coburn neither admitted nor denied the findings, but he agreed on cooperation and paying the state $300,000 in unlawful profits, according to the regulator’s notes.
The fine would have been greater
Coburn agreed as well to pay $13,000 in prejudgment interest and a $75,000 penalty. The SEC added that if Coburn would have faced a greater fine, if he had failed to cooperate with the investigators.
The SEC had reportedly suspended in October securities trading of Nevada-based firm American Retail Group, Inc. for forging the regulator’s approval on their cryptocurrency tradings.
The media reported in earlier this month as well, that the SEC is currently taking action against “dozens” of illegal Initial Coin Offerings (ICOs). The annual enforcement report for the 2018 fiscal year mentioned
Several ICO were named in the annual enforcement report for the 2018 fiscal, pointing to three of which defrauded investors accumulated more than $68 million.