The U.S. Securities and Exchange Commission announced that it has filed a cease and desist order against the sole owner and operator of EtherDelta, an unregistered online trading platform, marking the first time the commission went after such a platform based on findings that it operated as an unregistered securities exchange.

The SEC claimed in an announcement released on Nov. 8 that EtherDelta and its founder, Zachary Coburn, violated Section Five of the Exchange Act, which makes it illegal for any broker, dealer or exchange directly or indirectly to “effect any transaction in a security or to report any such transaction in interstate commerce, unless the exchange is registered as a national securities exchange under Section Six of the Exchange Act.”

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]