Chinese police are reportedly taking legal action against non-custodial token trading platform EtherDelta in connection with an apparent exit scam.
The news was reported on Aug. 7 in a series of tweets published by Dovey Wan, founding partner at blockchain-focused investment firm Primitive Ventures.
"The actual beneficiaries of EtherDelta are all Chinese after ownership transition in 2017 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".
Wan added a further tweet, noting that "FYI Chinese police shows no mercy if any crypto scam involved large amount of retail capital."
Run-in with the U.S. SEC. EtherDelta, a non-custodial marketplace for trading ERC20 tokens, enables users to trade digital assets by means of an order book and Ethereum blockchain-powered smart contracts.
The exchange had faced legal difficulties in fall 2018 when the United States Securities and Exchange Commission charged founder Zachary Coburn with operating an unregistered securities exchange.
Coburn neither admitted nor denied the findings, but he consented to cooperate and to pay the state $300,000 in unlawful profits.
He agreed to pay $13,000 in prejudgment interest and a $75,000 penalty.
This May, crypto analytics startup Coinfirm found that over 500 of the ether stolen from hacked New Zealand-based cryptocurrency exchange Cryptopia - worth over $125,000 - had been moved to EtherDelta.
China: Police Investigating EtherDelta Over Alleged Exit Scam, Report
Published on Aug 7, 2019
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.