The Commission on securities and exchange Commission (SEC), the U.S. accused the founder of a decentralized Ethereum exchange EtherDelta in illegal trading in securities.
EtherDelta is positioned as a decentralized market: traders conduct trading Ethereum tokens without the need for registration, and the bidding process is governed by smart contracts. To maintain anonymity on the site uses off-chain transactions.
As stated by the SEC, the exchange EtherDelta contributed to the illegal sale and purchase of tokens equates to securities under Federal law. The Commission has classified platform as unregistered securities exchanges.
“EtherDelta has a user interface and the basic functions of the national stock exchange, therefore, had to obtain a license from the SEC or the right to exclude”, — said the Deputy Director of the Department on the implementation of law Stephanie Avakian (Avakian Stephanie).
Another employee of the same Department Steven Peikin (Steven Peikin) explained the actions of the SEC, saying that the Agency is obliged to control digital markets and enforce existing legislation to protect investors. This is especially important in the conditions of reforming of the market of securities through blockchain technologies.
The Commission demanded that the EtherDelta the return of misappropriated funds in the amount of $300,000, payment of the trial is $13 000 and $75 000 fine. The founder of the exchange to admit guilt did not, but the findings of the Commission did not contest.
Some journalists believe that EtherDelta cannot be called a decentralized exchange, which makes the situation less clear. The fact that the platform is supported by a legal entity which was headed by the founder EtherDelta, and if we have at least one control unit, to be called decentralized incorrectly.
Recall that in December last year, the exchange was hacked. The attackers withdrew 308 esters for a total of $250 000 (at the exchange rate at the time of the hacking).