Etherdelta Founder Fined $400K for Operating Unregistered Securities Exchange
The U.S. Securities and Exchange Commission has published details of a cease and desist order it has taken against Zachary Coburn, the operator of Etherdelta. The decentralized ER20 token exchange was the leading Ethereum DEX during its peak, executing more than 3.6 million orders. According to the SEC, many of those orders were for unregistered security tokens.
Zachary Coburn Settles With SEC
Zachary Coburn is almost $400,000 out of pocket after settling with the SEC for having operated Etherdelta as an unlicensed exchange where security tokens were traded. In total, Coburn has been ordered to pay $300,000 in disgorgement with an additional $88,000 in penalties on top. While the news, published in an SEC document today, has come as a surprise, it has been evident for some time that DEXs operating within the U.S. are going to have to change their business model. IDEX, which has…
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