EtherDelta investigated for exit scam

[mlawson71]

Chinese police are reportedly taking legal action against cryptocurrency exchange EtherDelta in connection with an alleged exit scam.

The news was actually reported in a series of tweets by the ex-owner and founding partner of the exchange Dovey Wan. She stated that the alleged exit scam involved the sale of native exchange asset EtherDelta Token (EDT) after platform was acquired by a group of Chinese investors in 2017.

According to Wan, founder Zachary Coburn sold the exchange and the Chinese buyers used it as a “front” to issue their initial coin offering (ICO), which turned out to be an exit scam.

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