SEC accused Shopin blockchain startup CEO to release fraud ICO

The U.S. Securities and Exchange Commission (SEC) has charged Shopin CEO Eran Eyal with misleading investors for launching a fraud $ 42.5 million ICO with false information. Explicitly, Eyal has affirmed his start-up relationship with major retailers and a Silicon Valley entrepreneur. And of course, this information is entirely wrong.

Shopin CEO has released fraud ICO

Eran Eyal is a dual citizen of South Africa and Israel. He currently lives in Brooklyn, New York, also pleaded guilty to criminal charges brought by the office of New York Attorney General Letitia James.

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Eran Eyal, founder of the Shopin blockchain project

Eyal has been accused of deceiving investors by promising their money would go toward creating universal shopper profiles that would track customer purchases across online retailers and recommend products.

Moreover, he was accused of selling unregistered securities in the form of Shopin Tokens. When arrested, Eyal repeatedly said he was developing a platform to store and track customer records on various retailers. However, the Shopin project will never be built because Eyal has appropriated investor money, at least $ 500,000, for personal use. It also includes a dating service.

Moreover, Eyal has created at least four misinformation when promoting Shopin. Including Shopin that successfully implemented a pair of pilot programs, or the company has continuously been cooperating with many retailers. Or Shopin is an unnamed prominent Silicon Valley Blockchain entrepreneur that an advisor to the company or an unnamed company was an investor in the project.

Finally, Eyal also pleaded guilty to criminal charges made by the New York Attorney General’s office. However, the story has not stopped. The SEC is also accusing Eyal of failing to register to sell Shopin tokens as a security sale. They are requesting a permanent ban, dissolution, civil penalty, to permanently ban Eyal as an employee or director in any public company. Even Eyal cannot participate in any future token sales.

Previously, former NYAG member Barbara Underwood accused Eyal of stealing $ 600,000 from investors at the Springleap business. NYAG Letitia James currently began investigating Shopin and Eyal until June 2019.

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