The Securities and Exchange Commission said on Thursday that it had settled charges with Zachary Coburn, the founder of EtherDelta, for operating an unregistered national securities exchange. The platform was a secondary market for trading of ERC-20 tokens, which run on the ethereum blockchain – the most popular blockchain for crowdfunding companies when working on an initial coin offering (ICO). “We are witnessing a time of significant innovation in the securities markets with the use and application of distributed ledger technology,” said Steven Peikin, co-director of the SEC’s Enforcement Division, in a news release. “But to protect investors, this innovation necessitates the SEC’s thoughtful oversight of digital markets and enforcement of existing laws.” According to the news release, Coburn agreed to pay $300,000 in disgorgement, $13,000 in prejudgment interest and a $75,000 penalty.
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