Chinese Authorities Are Investigating EtherDelta Over Possible Exit Scam

The crypto trading platform EtherDelta is currently being investigated by the Chinese police over allegations of exit scam, which is when a company vanishes with funds from clients. In this case, EtherDelta is being accused of selling tokens during an Initial Coin Offering (ICO) and then abandoning the platform.

EtherDelta was a platform that was created to exchange Ethereum-based ERC20 tokens. The platform was non-custodial, meaning that people could trade tokens directly from their wallets instead of having to deposit funds. According to reports, the token sale happened from December 2017 to January 2018 and the platform was abandoned shortly after the token sale was complete.

EtherDelta was not originally a Chinese company. It was created by Zack Coburn, who sold the platform to Chinese investors. These investors were the ones who promoted the ICO that was an exit scam. The EDT tokens, which were sold during the ICO, therefore lost much of their value because the exchange was basically abandoned after what happened.

Local investors have currently talked to the police in order to charge the owners of the exchange, but so far no one has been arrested. Chinese authorities are known for being harsh on people who break financial laws, so the group will probably be caught soon.

EtherDelta also has problems in the U. S. The company was fined for $400,000 USD over accusations that it was running an unregistered platform for selling securities. In the U.S., normal retail investors cannot buy securities, only accredited ones, and companies also need to have special licenses to trade them.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide