Zachary Coburn, the founder of ETHerDelta, has just been charged by the US Securities and Exchange Commission (SEC) with operating an unregistered securities exchange. The SEC released the news via a press release yesterday.

ETHerDelta Charged

According to the report by the SEC, over the course of 18 months, ETHerDelta users placed over 3.6 million orders for digital currencies. Among those ordered were coins considered securities by US federal laws.

Under the current law, ETHerDelta was supposed to register in the US or apply for an exemption. However, the cryptocurrency exchange failed to do either.

“ETHerDelta had both the user interface and underlying functionality of an online national securities exchange and was required to register with the SEC or qualify for an exemption,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

According to the SEC, Coburn neither denied or admitted to the findings, instead, he consented to pay the state $300,000 in unlawful profits. In addition to the $300,000 fine, the ETHerDelta founder will pay $13,000 for prejudgment interest and an additional $75,000 penalty.