{"id":111577,"date":"2019-08-07T10:57:41","date_gmt":"2019-08-07T17:57:41","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=111577"},"modified":"2019-08-07T13:54:18","modified_gmt":"2019-08-07T20:54:18","slug":"etherdelta-exit-scam-china-authorities-investigating","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/etherdelta-exit-scam-china-authorities-investigating\/","title":{"rendered":"EtherDelta allegedly used in exit scam in China, authorities investigating"},"content":{"rendered":"<p>Evidence shows EtherDelta was sold to new owners in China and used in an exit scam. Chinese authorities are allegedly taking legal action against the decentralized exchange, according to documents provided by <a href=\"https:\/\/cryptoslate.com\/people\/dovey-wan\/\">Dovey Wan<\/a>, a founding partner at Primitive Ventures.<\/p>\n<p>Wan <a href=\"https:\/\/twitter.com\/doveywan\/status\/1158953030949076992\">pointed<\/a> out that the group of Chinese investors who bought EtherDelta from Zack Coburn back in December 2017 presumably perpetrated an exit scam. The dispute involves the sale of <a href=\"https:\/\/cryptoslate.com\/coins\/etherdelta-token\/\">EtherDelta Tokens<\/a> (EDT) in the form of initial coin offering (ICO), which ended in mid-January 2018 and raised $176,000.<\/p>\n<p>Following the end of the sale period, EtherDelta was abandoned and its new owners reportedly fled with the capital. As a result, many of the people who participated in the sale pressed charges against the exchange to the local police and an official probe was opened in China to further investigate the allegations.<\/p>\n<p>So far, Chinese authorities were able to obtain the stock ownership agreement between Coburn and the buyers, which contains their real names.\u00a0CryptoSlate reached out to Dovey Wan for additional information on the alleged scam and has yet to receive comment.<\/p>\n<figure style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/libD2vI6WcsDc6ZM-NdXBUo48abS3vPAgMAlwi49TIp2hOaMfhU_hEpm51FL6iMypRZ07H3khS2qPee9HNEt8W8iCQ9J04BgjIQZ9EmZ-z0gzVIvZQaESzxsPIrWr9OVfZiRCPt0\" alt=\"Stock agreement EtherDelta\" width=\"600\" height=\"689\" \/><figcaption class=\"wp-caption-text\">Stock agreement posted by Dovey Wan<\/figcaption><\/figure>\n<p>This is not the first time EtherDelta faced legal issues. Last year, the U.S. Securities and Exchange Commission (SEC) <a href=\"https:\/\/cryptoslate.com\/etherdelta-founder-charged-by-sec-for-operating-unregistered-exchange\/\">charged<\/a> its founder, Zachary Coburn, for running an unregistered securities exchange. Coburn consented with the sentence and committed to pay the state $300,000 in illegal profits, $13,000 in prejudgment interest and a $75,000 penalty.<\/p>\n<p>It remains to be seen the further actions that Chinese authorities will take against the new owners of EtherDelta since Wan highlighted that they tend to have \u201cno mercy\u201d for cryptocurrency related scams.<\/p>\n<p>In June 2019, for instance, Chinese police arrested six Chinese citizens on the Pacific island of Vanuatu that were linked to PlusToken. This firm claimed to be a cryptocurrency mobile wallet that ended up fleeing with a boggling $3 billion worth of users\u2019 funds, <a href=\"https:\/\/www.odaily.com\/post\/5138958\">according to<\/a> Chinese media outlet Odaily.<\/p>\n<p><em>This story is developing. Check back soon.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Evidence shows EtherDelta was sold to new owners in China and used in an exit scam. Chinese authorities are allegedly taking legal action against the decentralized exchange, according to documents provided by Dovey Wan, a founding partner at Primitive Ventures. Wan pointed out that the group of Chinese investors who bought EtherDelta from Zack Coburn [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":92746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9836],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EtherDelta allegedly used in exit scam in China, authorities investigating<\/title>\n<meta name=\"description\" content=\"Chinese authorities are allegedly taking legal action against the decentralized exchange EtherDelta, according to documents provided by Dovey Wan, a founding partner at Primitive Ventures.\u00a0\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/etherdelta-exit-scam-china-authorities-investigating\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EtherDelta allegedly used in exit scam in China, authorities investigating\" \/>\n<meta property=\"og:description\" content=\"Chinese authorities are allegedly taking legal action against the decentralized exchange EtherDelta, according to documents provided by Dovey Wan, a founding partner at Primitive Ventures.\u00a0\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/etherdelta-exit-scam-china-authorities-investigating\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-07T17:57:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-08-07T20:54:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/11\/etherdelta-fraud-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"EtherDelta allegedly used in exit scam in China, authorities investigating\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/etherdelta-exit-scam-china-authorities-investigating\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/etherdelta-exit-scam-china-authorities-investigating\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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