Bitcoin, Crypto currency, Blockchain

The SEC imposed a monetary penalty for ether Delta-founder

The U.S. securities regulator, the SEC has taken measures against the decentralized crypto-exchange (DEX) is taken in ether Delta. Ether Delta-founder Zachary Coburn is responsible for the operation of a non registered securities exchange.

The U.S. securities and exchange Commission SEC (Securities and Exchange Commission) has let the Hammer fall. Zachary Coburn, the founder of the decentralized crypto-exchange ether Delta, is accused of, to have about 18 months invalid, because it is not registered for trading in securities operated. The SEC announced its decision at 8. November. The user of the crypto-stock exchange have issued in this period, more than 3.6 million Orders for the purchase and sale of tokens. Since parts of this ERC20-Token to be classified, according to the U.S. Federal law as securities, would Coburn have to ether Delta with the SEC to register.

So ether the Delta is in breach of section 5 of the U.S. securities exchange act, according to the non-registered stock exchanges and/or Broker the business of trading in securities is prohibited. An exception can make exchanges, their trading volumes in the eyes of the Commission is so low, that a registration would not be practicable or necessary. Obviously, that was not in ether the Delta of the case.

Coburn is cooperating with SEC

Although Coburn is not involved since November 2017 on the operation of the stock exchange, he must answer as their founder. Coburn has not yet admitted their guilt has not shown a denial. The SEC noted in its Report, however, that the ether Delta-founder has facilitated the investigation by the SEC for its cooperation. Thus, Coburn has been able to reduce the severity of penalties:

“The Commission imposed no civil fine in the amount of more than $ 75,000, based on his [Coburns] participation in an investigation of the Commission and of its representation in all the associated enforcement measures, to testify.”

With the $ 75,000 it is not done yet. To 313.000 dollars to Coburn, the transaction fee in ether, Delta earned.

The judgment shows that not be able to escape, decentralized crypto-exchanges, to the long Arm of the SEC. It is unclear why Coburn of the registration requirement is not complied with. This was emphasized by the SEC last year, in your DAO Report again.

The SEC noted in the Case of the ethers of Delta, a majority of the transactions in the period after the publication of the DAO Reports have played. Possibly, Coburn saw at this time already for the fortunes of ether Delta responsible, since he had sold the crypto-stock exchange in December 2017, to foreign buyers.

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