Apparently, the crypto-token trading platform EtherDelta is in trouble again. First, the US Securities and Exchange Commission (SEC) accused the EtherDelta platform founder Zachary Coburn. Now the Chinese police are investigating in a possible EtherDelta scam in China.
Several months have passed since the SEC accused Zachary Coburn of operating an unregistered stock exchange. Stephanie Avakian, co-director of the SEC Enforcement Division, said in a press release :
EtherDelta had both the user interface and the underlying functions of a national online exchange, and had to register with the SEC or qualify for an exemption.
These demands, however, the crypto platform has never met. Rather, the operator decided to sell to Chinese investors.
After the indictment in the US begin the scam investigation in China
The case was not filed for a long time with the indictment. Because now the Chinese police are investigating. She accuses the token trading platform EtherDelta of being involved in a scam. Dovey Wan, partner of the Cryptocurrency Investment Fund Primitive Ventures, tweeted on August 7:
EtherDelta is involved in a big scam in China and the police are officially against it. The actual beneficiaries of EtherDelta are all Chinese after the change of ownership in 2017.
JUSTIN and 🤦🏻♀️🤦🏻♀️🤦🏻♀️
EtherDelta is involved in a major scam in China, police officially take legal action against it
The actual beneficiaries of EtherDelta are all Chinese after ownership transition in 2017
— Dovey Wan 🗝 🦖 (@DoveyWan) August 7, 2019
In another tweet to the scam she performed:
Initially, Zack Coburn sold EtherDelta to a group of Chinese who later executed the swap EDT token, which turned out to be an exit scam . Now angry EDT investors have spoken to the local police. The case will be included in the official investigation process.
With the sale Coburn could not protect himself from the consequences of his mistakes. Rather, it is now being discussed which connection exists between the EtherDelta incidents.
On EtherDelta, one scam chases the next
Yet Coburn has not commented on the latest developments. In disputes with the SEC Coburn, however, agreed to a settlement of payments. Accordingly, he paid $ 300,000 to Derogation before the closing of the lawsuit, plus $ 13,000 in prejudice rates and $ 75,000 in punishment. Coburn can accordingly expect a reduced sentence. However, it has not been conclusively clarified to what extent Coburn is in contact with the latest EtherDelta scam.
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