Chinese Police Accuse EtherDelta Cryptocurrency Platform of Fraud

The Chinese police are investigating the operation of the EtherDelta cryptocurrency platform on suspicion of organizing a fraudulent scheme.

Earlier, the US Securities and Exchange Commission (SEC) accused the founder of the EtherDelta platform Zachary Coburn (Zachary Coburn) in illegal trading in securities.

Now how informs Primitive Ventures investment cryptocurrency fund partner Davy Wan, Chinese police also drew attention to the company’s activities:

“EtherDelta is involved in a major fraud in China, the police are taking action against the company.”

Wang also saidthat Coburn sold EtherDelta to a group of Chinese buyers who later issued an EDT exchange token, and this scheme turned out to be fraudulent. Apparently, angry investors turned to the police.

Last November, the SEC accused Coburn of managing an unregistered stock exchange. At that time, the regulator said:

“Almost all orders placed through EtherDelta were executed after the Commission’s report, in which some digital assets, for example, DAO tokens, were recognized as securities. In addition, the Commission also concluded that platforms offering trading in such assets are subject to SEC regulation. ”

Then Coburn settled the case with the SEC, not recognizing and not denying the allegations. Van concludedthat the Chinese police will act “mercilessly” if cryptocurrency fraud is associated with a large volume of retail sales.