EtherDelta Founder to be Charged by SEC

Zachary Coburn was charged in the operational management of the unregistered exchange for the sale of securities
09 November 2018   835

The US Securities and Exchange Commission (SEC) has filed charges against the founder of the platform for cryptocurrency trading EtherDelta Zachary Coburn in the operational management of the unregistered exchange for the sale of securities.

The regulator’s statement says that the decentralized EtherDelta exchange served as a secondary market for trading ERC-20 standard tokens, which the SEC regards as “digital securities”.

EtherDelta provided a marketplace for bringing together buyers and sellers for digital asset securities through the combined use of an order book, a website that displayed orders, and a “smart contract” run on the Ethereum blockchain. EtherDelta's smart contract was coded to validate the order messages, confirm the terms and conditions of orders, execute paired orders, and direct the distributed ledger to be updated to reflect a trade.
 

SEC Press Release

The regulator stresses that almost all transactions on EtherDelta were carried out after the SEC report of 2017, in which it recognized TheDAO tokens as securities, and the exchange was not registered with the SEC and did not apply for elimination in the context of federal laws about securities.

We are witnessing a time of significant innovation in the securities markets with the use and application of distributed ledger technology. But to protect investors, this innovation necessitates the SEC's thoughtful oversight of digital markets and enforcement of existing laws.
 

Steven Peikin

Co-Director, SEC's Enforcement Division

As noted, Coburn did not admit, but did not reject his guilt. Nevertheless, he agreed to return the illegally obtained profit in the amount of $ 300,000 to the state, as well as to pay $ 13,000 in interest for the period before the court decision and $ 75,000 fine. The Office also noted that Coburn collaborated with the investigation, which resulted in a reduction in the amount of the fine.

This case is also notable for the fact that it was the first of its kind, which concerns the exchange, on which there were never transactions in fiat currencies. Also, the SEC essentially makes it clear that it equates almost all Ethereum tokens to securities.

 

Raven Protocol to be the First IDO at Binance DEX

Team cannot say exactly how IEO will pass, since similar campaigns hadn't been concluded at Binance DEX before, but they are going to sell $500k worth tokens
14 June 2019   403

The Raven Protocol cryptocurrency project announced about the planned initial exchange offering (IEO), which will be based on the infrastructure of the Binance DEX exchange - in this case the campaign will be called IDO or Initial Dex Offering.

Raven Protocol confirmed the right to list its token on Binance DEX paired with BNB on June 17 at 9:00 UTC. At the same time, the IDO of RAVEN tokens will start. The project draws attention to the fact that neither Binance, nor Binance Chain, nor Binance DEX stand behind this initiative.

At the same time, Raven Protocol notes that it cannot say how exactly IEO will pass, since with Binance DEX, similar campaigns have not been conducted before.

Potential participants need to pass a preliminary identification by sending to the address of founders@ravenprotocol.com their address in the Binance Chain, an identity document, a selfie and proof of residence.

In total, Raven Protocol expects to raise $ 500,000 by selling 3% of its own token emission (300,000,000 RAVEN). Accommodation will be on a first come, first served basis. The limit on the amount of investment for one user is declared at the level of 100 BNB.