Categories: EthereumNews

SEC charges decentralized exchange, EtherDelta, for operating unregulated cryptocurrency exchange

The Security and Exchange Commission (SEC) of the US charged the decentralized exchange (DEX), EtherDelta, for operating an exchange without registering it.

As a DEX, EtherDelta allows users to trade Ethereum based tokens anonymously and without the funds being stored by the exchange. But according to the SEC, EtherDelta got the users to exchange tokens which it deems as security, thus breaking the law.

EtherDelta’s founder Zachary Coborn has agreed to pay a fine of $300,000 in disgorgement plus $13K in prejudgment interest and a $75K penalty.

According to a statement received by CCN,

“We are witnessing a time of significant innovation in the securities markets with the use and application of distributed ledger technology,” added Steven Peikin, co-director of the SEC’s Enforcement Division. “But to protect investors, this innovation necessitates the SEC’s thoughtful oversight of digital markets and enforcement of existing laws.”

Blockmanity’s Take

One of the fundamental challenges a DEX has to overcome is a political barrier imposed through anonymous trading. Centralized Exchanges have overcome the political barrier by cooperating with the government, but due to the decentralized nature of DEX it becomes much harder. EtherDelta penalty is the first one of many other fines to come.

Note: The story is developing, subscribe to our notifications to get instant updates.


Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

Ishan Garg

Ishan is a cryptocurrency trader and a journalist. He joined the cryptocurrency space in 2017. He is the founder of Blockmanity. He is a HODLER and is holding BTC, ETH & UGT.

Share
Published by
Ishan Garg

Recent Posts

Bullish Signals for Sui Blockchain: Top SUI meme projects of 2024

Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…

2 months ago

AI Companions: A New Era of Digital Relationships and Virtual Experiences

As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…

2 months ago

zkCross Network: Simplifying DeFi Complexity and Achieving Fundraising Success

Did you know that 85% of DeFi value is concentrated in six blockchains?  DeFi is…

2 months ago

Don’t Miss Out: Get $CLP Tokens in the Exclusive RWA IDO Now!

CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…

3 months ago

Step into the Future of Web3 at Blockchain Futuristic Conference 2024, August 13-14

Join us at BFC 2024 to explore the future of Web3. Use a special discount…

4 months ago

WebX Asia 2024: Web3 Innovation Ignites in Tokyo

Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…

4 months ago