Chinese police take on EtherDelta platform

Chinese police allegedly initiated an investigation into the EtherDelta cryptocurrency token trading platform.

“EtherDelta is involved in a major fraudulent scheme in China. The police are officially taking legal action against them, ”Davi Wang, a partner at Primitive Ventures Crypto Investment Fund, wrote on Twitter.

According to Wang, EtherDelta was sold by its founder Zachary Kobern in 2017, and has since been controlled by Chinese citizens.

“Essentially, Zack Coburn sold EtherDelta to a group of Chinese who then issued an EDT token and completed an exit scam,” Wang writes. – Angry investors complained to the police. Recently, an official investigation has been initiated in this case. ”

EtherDelta has previously been featured in the news in connection with law enforcement. Last November, the US Securities and Exchange Commission (SEC) indicted Coburn for organizing a platform for the exchange of securities in the absence of registration required by law.

“Almost all of the applications that were placed on the EtherDelta platform led to the conclusion of transactions after the SEC published the report on The DAO in 2017, which indicated that certain digital assets, such as DAO tokens, are securities, and platforms, which provide services for trading in such securities in the form of digital assets, will be subject to the SEC requirements, according to which they must register or apply for an exception to the rules, ”the decision of the American regulator said.

btcxlab on ↪ twitter

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