SEC settles with EtherDelta founder for running an unlicensed exchange [pdf]

Re:SEC settles with EtherDelta founder for running an unlice... by TrainedMonkey on Thursday November 08, 2018 @05:40PM (#18410723)

"Respondent Coburn shall pay disgorgementof $300,000 and prejudgment interest of $13,000, for a total of $313,000 ,to the Securities and Exchange Commission for transfer to the United States Treasury subject to Exchange Act Section 21F(g)(3)."

"Respondent Coburn shall, within 10 days of this Order, pay a civil money penalty of $75,000 to the Securities and Exchange Commission for transfer to the United States Treasury subject to Exchange Act Section 21F(g)(3)."

Total fine is under $400,000k. I am curious whether the enterprise was net positive factoring the fine into account.

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Re:SEC settles with EtherDelta founder for running an unlice... by seibelj on Thursday November 08, 2018 @06:05PM (#18410878)

I estimated he was making about $20,000 USD a week during the ICO boom, and he also sold the exchange to Asian buyers, so I believe he came out on top. Although dealing with the SEC is very expensive (your lawyers spend many hours on calls and assisting in discovery) and also it's nerve wracking.

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Re:SEC settles with EtherDelta founder for running an unlice... by shawnz on Thursday November 08, 2018 @06:05PM (#18410879)

Why would the SEC want them to not be net positive? Are they trying to dismantle the business or just ensure that they get their dues?

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Re:SEC settles with EtherDelta founder for running an unlice... by crazypyro on Thursday November 08, 2018 @06:15PM (#18410927)

This was a fine imposed against the founder individually, not against EtherDelta, the company, which is owned by Asian investors.

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Re:SEC settles with EtherDelta founder for running an unlice... by riazrizvi on Thursday November 08, 2018 @06:03PM (#18410869)

They were barely able to raise $12mm (https://www.google.com/amp/s/amp.reddit.com/r/EtherDelta/com...)

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Re:SEC settles with EtherDelta founder for running an unlice... by cstrat on Thursday November 08, 2018 @06:26PM (#18410991)

That still sounds like a great return if it was just setup by one guy? Even if his legal and running costs were $2M - walking away with $10M would be great

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Re:SEC settles with EtherDelta founder for running an unlice... by omarchowdhury on Thursday November 08, 2018 @08:05PM (#18411595)

The token sale was administrated by the Asian group that purchased EtherDelta from the founder.

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