Defunct Crypto DEX Etherdelta Still Holds $42M in Customer Assets

• Coinbase director updated the community about a DEX that crashed with people’s assets.
• Etherdelta still holds $42 million in customers’ assets.
• In 2018, SEC charged Etherdelta’s founders for managing assets without registration.

Conor Grogan, a director at Coinbase, one of the leading crypto exchanges, updated the crypto community about a decentralized exchange (DEX) that phased out of the market with many people’s assets trapped inside.

The DEX was Etherdelta, one of the first exchanges launched in 2016, which, unfortunately, shut down due to the Securities and Exchange Commission (SEC)’s enforcement against its founders.

However, according to Grogan, Etherdelta’s smart contracts still operated. Interestingly, Etherdelta still holds $42 million in assets, most of which Grogan believes the owners have about.

Furthermore, the Coinbase director shared a list of wallet addresses with at least 0.1 Ethereum tokens on the smart contract, adding that the funds are withdrawable via contracts.

In 2018, the SEC slammed charges against EtherDelta founder Zachary Coburn. The suit represented the regulator’s first enforcement action against an unregistered digital asset manager. The SEC alleged that EtherDelta did not obtain a regulatory permit before allowing customers to place over 3.6 million ERC20 tokens.

In other news, Everlend Finance, a Solana-based DeFi lending protocol, has asked its customers to move out their funds that it was shutting down its app platform. The project noted it has enough resources to remain afloat. However, it has decided to halt, as pressing forwards with its current condition would be equivalent to gambling.

At the peak of its operation, Everlend controlled almost $400,000 in total value locked, according to DeFiLlama. This figure declined significantly in November amid the collapse of FTX when funds exited protocols in the Solana ecosystem.