The Commission on securities and exchange Commission (SEC) has accused the founder of the decentralized cryptocurrency exchanges EtherDelta Coburn Zachary (Zachary Coburn) in the control is not passed official registration of the exchange securities. According to the SEC, the platform EtherDelta designed for secondary trade tokens standard ERC20, which is a digital securities.

SEC Charges Founder EtherDelta With Operating an Unregistered Exchange

— SEC_News (@SEC_News) November 8, 2018

The Commission argues that almost all applications in the system were made after the SEC in 2017, released a report on The DAO, in which he emphasized that some digital assets are securities, a trading platform needs to adhere to the requirements of the regulator in terms of registering as stock exchanges or exceptions to the rule. However EtherDelta ignored this warning, although there were user interface and basic functionality national online exchange securities.

Coburn created a crypto currency exchange in 2016, single-handedly ran it, and according to the SEC, knew about the violation, and at the end of 2017 sold it to a foreign buyer.

In the course of the proceedings it is not acknowledged and not denied the accusations, but cooperated with the investigation and as a protection against more severe penalties agreed to return in favor of the United States received profit in the amount of $300 thousand, interest for the period prior to judgment in the amount of $13 thousand and $75 thousand as a penalty.

Recall that in the spring of this year, Gary Gensler (Gary Gensler), who previously worked at Goldman Sachs and headed the Commission on urgent exchange trade of the USA (CFTC), and now teaches MIT students the use of blockchain technology in Finance, said that Ethereum and Ripple may constitute unregistered securities. However, in June the Director of the division of corporate Finance SEC William Hinman (William Hinman) said that at least “structured as currently, the” ETH will not be regulated by the SEC as securities.