EtherDelta platform subject of police probe

Posted 07 August, 2019

Chinese police are investigating the EtherDelta cryptocurrency trading platform several months after the US Securities and Exchange Commission (SEC) charged the founder of the company, Zachary Koburn, with working without proper registration in the USA.

Earlier in November 2018, the ex-CEO of EtherDelta was accused by the SEC of having his company operate as an unregistered national securities exchange. Coburn agreed to pay 300,000 dollars in quality - a return of illegally appropriated property ”, as well as 13,000 dollars of interest for the period until the court decision and $ 75,000 fine.

Primitive Ventures cryptocurrency investment fund partner Dovey Wan wrote on Twitter:

''EtherDelta is involved in a major scam in China, police officially take legal action against it.''

It also became known that Coburn sold EtherDelta to a group of Chinese investors who later issued an EDT exchange token. The release of the token was identified by law enforcement as a fraudulent act. Individual token investors have filed a complaint with the police.

''Basically Zack Coburn sold EtherDelta to a group of Chinese who later issued exchange token $EDT and turned out to be a exit scam. Now furious investors of $EDT whistle blowed to local police the case was recently taking into official investigation process,'' noted Wan.

It should be mentioned Coburn neither accepted nor denied the results of the SEC investigation.

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