Categories: Ethereum

Chinese Police Investigate Exit Scam on EtherDelta Crypto Platform

Click here to view original web page at

Reports are emerging that police in China are conducting investigations into crypto scams on the EtherDelta trading platform. This comes just months after the US Securities and Exchange Commission charged the platform’s founder.

EtherDelta in More Hot Water

According to a partner at crypto investment fund Primitive Ventures, the platform is currently under investigation in China. Dovey Wan tweeted that the beneficiaries of EtherDelta are all Chinese following the ownership transition.

“EtherDelta is involved in a major scam in China, police officially take legal action against it. The actual beneficiaries of EtherDelta are all Chinese after ownership transition in 2017”

According to Wan, founder Zack Coburn sold the platform to a group of Chinese investors who issued the EDT token which later turned out to be an exit scam. She added that furious investors of EDT blew the whistle to local police taking the case into an official investigation.

The Chinese police show ‘no mercy’ if a crypto scam involves a large amount of retail capital according to Wan who continued to elaborate on the ownership of the platform.

“This is the stock ownership agreement between the Chinese buyers and Zack, obtained by the Police. Now we know who the mysterious buyers are. Apparently these folks have NO ACTUAL money for the transaction but use EtherDelta as a front to issue their own ICO for payout”

In November last year Coburn was charged by the SEC for operating an unregulated crypto exchange. The filing stated:

“Almost all of the orders placed through EtherDelta’s platform were traded after the Commission issued its 2017 DAO Report, which concluded that certain digital assets, such as DAO tokens, were securities and that platforms that offered trading of these digital asset securities would be subject to the SEC’s requirement that exchanges register or operate pursuant to an exemption.”

The statement revealed that over an 18 month period, EtherDelta’s users executed more than 3.6 million orders for ERC20 tokens, including tokens that are securities under the federal securities laws. It added that Coburn consented to the order and agreed to pay $300,000 in disgorgement, plus $13,000 in prejudgment interest and a $75,000 penalty.

According to reports in May, crypto analytics startup, Coinfirm, found that over 500 of the Ethereum tokens stolen from hacked New Zealand based crypto exchange Cryptopia had been moved to EtherDelta.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Everyone’s Worst Fears About EOS Are Proving True

The Takeaway: EOS is the world’s seventh-largest blockchain by market cap, with a value topping $3 billion since February 2019.… Read More

41 mins ago

Street Artist Makes $12,000 in Bitcoin Donations

A French street artist best known for painting lady liberty leading the yellow vests has stated he has received more… Read More

2 hours ago

Wave Financial Launches World-First Bitcoin Yield Fund: Wave BTC Income & Growth Digital Fund

LOS ANGELES, Sept. 19, 2019 /PRNewswire/ -- Wave Financial LLC (Wave), a leading asset management firm focused on digital assets,… Read More

2 hours ago

Nigerian man returns bitcoins worth $80,000

Keith Mali Chung returned Bitcoins worth $80,000 mistakenly transferred to him. A Nigerian man who found $80,000 dollar's worth of… Read More

2 hours ago

Bitcoin Surrenders Post Fed Rate Cut; Pullback Awaited

Bitcoin slipped below $10,000 on Thursday after the Federal Reserve cut benchmark lending rates by 25 basis points.The BTC/USD instrument… Read More

2 hours ago

Bitcoin Hashrate Hits All-time High as Price Dwindles

The benchmark metric of miners confidence in the Bitcoin network established its all-time high on Thursday.Hashrate, which reflects the processing… Read More

2 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More