Crypto exchange EtherDelta is being investigated for a $175,000 ‘exit scam’ in China
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.
JUSTIN and ????????♀️????????♀️????????♀️
EtherDelta is involved in a major scam in China, police officially take legal action against it
The actual beneficiaries of EtherDelta are all Chinese after ownership transition in 2017
Highly recommend western media to follow up @coindesk @Cointelegraph pic.twitter.com/eGPm8wor8k
— Dovey Wan ???? ???? (@DoveyWan) August 7, 2019
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.
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