Copy link
Increase text size
Decrease text size
Link copied

Crypto exchange EtherDelta is being investigated for a $175,000 'exit scam' in China

Thu, 08 Aug 2019, 03:47 am UTC

Chinese authorities are allegedly investigating claims that non-custodial crypto exchange EtherDelta conducted a $176,000 exit scam after the company was sold to anonymous Chinese investors in December 2017, according to Dovey Wan, founding partner of blockchain-based investment company Primitive Ventures.

In a series of tweets, Wan said that the alleged scam involved the sale of native exchange asset EtherDelta Token (EDT). She said that the exchange’s founder Zack Coburn sold EtherDelta to Jun Chen and colleagues, who later issued exchange token EDT and it turned out to be an “exit scam.”

Apparently these folks have no actual money for the transaction but use EtherDelta as a front to issue their own ICO for payout,” she stated.

The angry EDT investors whistleblowed to local authorities, and the case is now “taking into official investigation process.” Wan further warned that “Chinese police shows no mercy if any crypto scam involved large amount of retail capital.

This is not the first time EtherDelta has been involved in legal issues. Last year, the U.S. Securities and Exchange Commission (SEC) charged Coburn for running an unregistered securities exchange. The founder consented to cooperate and paid the state $300,000 in illegal profits, $13,000 in prejudgement interest, and $75,000 penalty.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $9,648.61 (-1.30%)
  • Ethereum (ETH) $258.62 (+2.54%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $402.08 (-0.15%)
  • Bitcoin SV (BSV) $307.77 (+11.21%)
  • Bitcoin (BTC) $9,648.61 (-1.30%)
Feb 17, 2020 (Monday)
Fullerton Markets adds support for cryptocurrency deposits and withdrawals
Crypto asset custodian Copper raises $8M in Series A round
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
CFTC sues Colorado resident with fraud in crypto-related Ponzi scheme
Crypto Technicals: ETH/USD slips below 5-DMA, 'Golden Cross' to limit downside
Central Bank of The Bahamas to roll out CBDC in H2 2020
Stellar Development Foundation joins Blockchain Association
Dubai Multi Commodities Centre to launch blockchain-based sugar trading platform
Crypto Technicals: BTC/USD holds 21-EMA support, break below could see further weakness
Binance applied for an operating license in Singapore, CEO confirms
IOHK establishes new research lab at University of Wyoming
Chinese forex regulator SAFE’s blockchain cross-border financing pilot continues expansion
Blockchain social media platform Steemit to migrate to TRON network
Feb 14, 2020 (Friday)
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Israel’s stock exchange partners with Edinburgh-based startup for its Blockchain Securities Lending platform
Blockchain insurance startup B3i completes 30 reinsurance contracts on its platform
Crypto Technicals: TRON (TRX) confirms 'Golden Cross' on the daily charts, eyes 61.8% Fib at 0.0297
Crypto investment firm Galaxy Digital lays off 15% of its workforce
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.