SEC Says EtherDelta Was Operating As Unregistered Exchange

Neutral SEC Says EtherDelta Was Operating As Unregistered Exchange

November 8, 2018 10:17 PM

This is the first time the SEC has taken action against an unregistered national securities exchange.

The US Securities and Exchange Commission (SEC) has brought charges against Zachary Coburn, founder of crypto exchange EtherDelta, for running an unregistered securities exchange, according to a November 8 press release. (The full cease and desist order can be found here.)

EtherDelta is a trading platform where participants buy, sell, and trade ERC20 tokens. Some of these tokens, apparently, qualify as securities as defined in the DAO Report published by the commission in July 2017. The SEC defines a security as an "investment contract ...in a common enterprise with the reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others."

Further, Stephanie Avakian, the co-director of the SEC's Enforcement Division, said, "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."

According to the press release, Coburn has agreed to pay $300,000 in disgorgement, $13,000 in prejudgment interest, and a $75,000 penalty. Coburn has reportedly been very cooperative, a fact that the SEC says it took into consideration when imposing these fines.

It is unclear if Coburn has since registered the exchange with the SEC or been approved for an exemption. The SEC says that the investigation is still ongoing, but at the time of press release, the exchange website was still up and seemed to be conducting business as usual.

Although the SEC has previously taken action against unregistered broker-dealers and fraudulent initial coin offerings, this is the first time the regulatory body has taken action based on evidence that a platform was operating as an unregistered national securities exchange.

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.


ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest SEC, securities or other Ethereum wallets and exchanges news.

11/08/2018 / 18:09:27 Source: ethnews.com

wallets and exchanges | | Exchange|Regulation
BTC
1 BTC=$5,584.36
XRP
1 XRP=$0.4734
ETH
1 ETH=$179.68
XUC
1 XUC=$3.49
BCH
1 BCH=$379.91
EOS
1 EOS=$4.68

News Feed 50

Cryptoglobe Neutral - BitGo Adds GUSD (Gemini Dollar) read more.
11/15/2018 / 19:30:00
Ccn Neutral - Bitcoin Cash: ABC Futures Cross $300 in Hard Fork Aftermath read more.
11/15/2018 / 19:25:41
Bitcoin.Com Neutral - Hash Wars: The Bitcoin Cash Hard Fork Has Begun read more.
11/15/2018 / 19:08:29
Themerkle Negative - Bitcoin Price Watch: Currency Falls to Its Lowest Point in A Year read more.
11/15/2018 / 18:57:43
Cryptoglobe Neutral - Bitcoin Cash (BCH) Fork Makes Bitcoin Mining More Enticing - For Now read more.
11/15/2018 / 18:55:47
Cointelegraph Neutral - After Yesterday’s Bloodbath, Losses Continue for Major Cryptos, XRP Overtakes Ethereum read more.
11/15/2018 / 18:53:00
Cryptonewsreview Neutral - Bitcoin Cash fork goes ahead, ABC side is early front runner read more.
11/15/2018 / 18:49:28
Blokt Negative - Bitcoin’s Market Cap Falls Below $100B, Mirrors Crypto Market’s $27.5B Decline In Just 11 Hours read more.
11/15/2018 / 18:44:49
Livebitcoinnews Neutral - Market Value of Bitcoin Falls Below $100 Billion, First Time Since October read more.
11/15/2018 / 18:30:53
Newsbtc Neutral - How Low Can It Go? Bitcoin Settles Below $5,600 as Altcoins Continue to Drop read more.
11/15/2018 / 18:30:49
Ccn Neutral - Breaking: Bitcoin Cash Hard Forks — BCH Hash War Begins read more.
11/15/2018 / 18:16:06
Cryptoglobe Neutral - Prominent Bitcoin Cash Supporter Calvin Ayre Discusses the BCH Fork read more.
11/15/2018 / 18:15:00
Bitcoinmagazine Neutral - Binance Will Support USDC Trading Starting November 17 read more.
11/15/2018 / 18:11:40
Newsbtc Neutral - IMMO Has Denied Rumors of Collaboration With the Rothschilds, and That Is Why We Are Now Surer Than Ever read more.
11/15/2018 / 18:10:38
Coindesk Negative - Bitcoin Cash Just Officially Split Into Two Competing Blockchains read more.
11/15/2018 / 18:05:54
Bitcoin.Com Neutral - Canaan’s Hong Kong Listing Plans in Limbo read more.
11/15/2018 / 18:05:41
Cointelegraph Neutral - European Central Bank Exec Calls Bitcoin the ‘Evil Spawn of the Financial Crisis' read more.
11/15/2018 / 17:47:00
Cryptonewsreview Neutral - Markets wait with trepidation as Bitcoin Cash fork nears; Bitcoin price hit another 2018 low read more.
11/15/2018 / 17:31:46
Cryptoglobe Neutral - LIVE: Here’s What’s Going on at the Time of BCH’s Hard Fork read more.
11/15/2018 / 17:20:11
Cryptopotato Neutral - #Ethereum Price Analysis Nov.15: Will Support Hold? read more.
11/15/2018 / 17:12:00
Cointelegraph Neutral - Russia: Sberbank CEO Says Industrial Scale Blockchain Adoption Is 1-2 Years Away read more.
11/15/2018 / 17:08:00
Newsbtc Neutral - BitMEX CEO Accurately Called $5,000 Bitcoin in August, Is $2,000 Next? read more.
11/15/2018 / 17:00:56
Bitcoinist Neutral - Ripple (XRP) Overtakes Ethereum as Second Biggest Crypto By Market Cap read more.
11/15/2018 / 17:00:48
Coindesk Neutral - This Bitcoin Skeptic Wants to Make ‘Stable’ Cryptos for Venezuela read more.
11/15/2018 / 17:00:41
Cryptoglobe Neutral - IMF's Deputy General Counsel: Asian Countries Are Eager to 'Unlock Benefits' of Fintech read more.
11/15/2018 / 17:00:00
Ccn Neutral - Bitcoin Cash Hard Fork: How Did We Get Here? read more.
11/15/2018 / 16:59:55
Themerkle Neutral - Bitcoin Unlimited vs Bitcoin ABC vs Bitcoin SV – Node & Economic Support read more.
11/15/2018 / 16:53:55
Cryptoinsider Neutral - Without SWIFT, Iran turns to crypto read more.
11/15/2018 / 16:50:23
Bitcoin.Com Neutral - Canadian Court to Take Custody of Quadrigacx Funds, NYDIG Gets Bitlicense read more.
11/15/2018 / 16:35:12
Cointelegraph Neutral - Bitcoin’s Breakdown Will Take ‘Weeks, If Not Months’ to Rebound, Says Fundstrat Analyst read more.
11/15/2018 / 16:33:00
Trustnodes Neutral - The Bitcoin Cash Hardfork is Now Imminent read more.
11/15/2018 / 16:31:28
Cryptoglobe Neutral - Bitcoin Cash SV Supporter CoinGeek Hit With DDoS Attack Ahead of Hard Fork read more.
11/15/2018 / 16:30:45
Livebitcoinnews Neutral - Could Increasing Costs Make ICOs Too Expensive for Startups? read more.
11/15/2018 / 16:30:26
Coindesk Neutral - Coinbase-Backed ‘Gods Unchained’ Releases Gameplay Trailer read more.
11/15/2018 / 16:23:14
Coindesk Neutral - Police Arrest 8 Over Alleged $68 Million Crypto Pyramid Scheme in Japan read more.
11/15/2018 / 16:00:18
Cryptoglobe Neutral - Canada's Courts to Take Custody of Crypto Exchange QuadrigaCX’s Frozen Funds read more.
11/15/2018 / 16:00:00
Ccn Negative - The Brexit Deal, a Tumbling Pound, and a Ceaseless Crypto Bloodbath read more.
11/15/2018 / 15:58:34
Coinspeaker Neutral - NYDFS Grants Yet Another BitLicense, Now It’s Time for NY Digital Investment Group to Celebrate read more.
11/15/2018 / 15:50:52
Coindesk Neutral - Ahead of Bitcoin Cash Fork, Hash Power Still Favors SV Camp read more.
11/15/2018 / 15:40:38
Cointelegraph Neutral - Ohio Congressman Wants to Allow ICOs to 'Sidestep' Securities Laws read more.
11/15/2018 / 15:40:00
Financemagnates Neutral - OKCoin is Expanding to Argentina read more.
11/15/2018 / 15:34:56
Cryptoglobe Neutral - #EOS Price Analysis – November 15 read more.
11/15/2018 / 15:30:00
Blokt Neutral - ICON Foundation Addresses the Community in New Blog, Highlights Efforts in Communication read more.
11/15/2018 / 15:29:58
Cointelegraph Neutral - Malaysian Lending Giant CIMB Joins Ripple’s Cross-Border Payment Network read more.
11/15/2018 / 15:14:00
Blokt Neutral - New Cryptocurrency Trading Platform With Massive Leverage Is Introduced read more.
11/15/2018 / 15:11:10
Bitcoin.Com Neutral - Seba Crypto Expects Swiss Banking License, Independent Reserve Integrates Tax Tool read more.
11/15/2018 / 15:10:59
Ccn Neutral - Newsflash: Bitcoin Cash Price Careens Below $390 as Hard Fork Approaches read more.
11/15/2018 / 15:07:44
Trustnodes Neutral - Bitstamp Will Only List BCHABC read more.
11/15/2018 / 15:03:41
Coindesk Neutral - Binance Exchange Will List Circle’s USDC Stablecoin This Week read more.
11/15/2018 / 15:00:52
Cryptoglobe Neutral - 0x-Based OpenRelay Self-Regulates, Builds Token 'Blacklist' After SEC Charges Against EtherDelta read more.
11/15/2018 / 15:00:00
Negative
3.3%
Neutral
95.2%
Positive
1.4%
Mixed
0.1%

Latest comments:

4 min
Hey Sam, how is it going? But I must explain to you how all this mistaken idea of denouncing of a pleasure and praising pain was born
3 min
Pretty good. Doing my homework.. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because
2 min
Any chance to go out? To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage
2 min
.. Maybe 40-50 mins. I don't know exactly. On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
1 min
Anyway sounds great! These cases are perfectly simple and easy to distinguish.