RATE Group | SEC Charges Man With $42 Million Crypto Fraud Scheme
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SEC Charges Man With $42 Million Crypto Fraud Scheme

13 Dec SEC Charges Man With $42 Million Crypto Fraud Scheme

Posted at 10:50h in Cryptocurrency News by

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A US entrepreneur has been charged with defrauding investors in a cryptocurrency Initial Coin Offering (ICO) that raised more than $42 million.

The Securities and Exchange Commission (SEC) alleged that UnitedData founder Eran Eyal conducted a “fraudulent unregistered securities offering” by selling tokens for his Shopin business from August 2017 to April 2018.

It’s claimed that Eyal pocketed at least $500,000 of investor funds for rent, shopping, entertainment and even a dating service.

“Shopin aimed to use the funds from the sales of the Shopin Tokens to create universal shopper profiles, maintained on the blockchain, that would track customer purchase histories across online retailers and recommend products based on this information,” the SEC said.

“As alleged in the SEC’s complaint, Shopin never created a functional platform. The complaint further alleges that Eyal and Shopin repeatedly lied to investors in connection with its offering, including…

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