SEC charges digital asset company and its founder with fraudulent ICO

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SEC Order unregistered ICO

The Securities and Exchanges Commission (SEC) filed a lawsuit against a digital asset company and its founder for allegedly bilking millions of dollars from investors through a fraudulent initial coin offering (ICO).

In its complaint, the SEC alleged that United Data also doing business as Shopin and its founder Eran Eyal defrauded hundreds of investors and raised more than $42 million from them.

Defendants lied to investors about Shopin token

Mr. Eyal and his company allegedly misrepresented and omitted material information about is unregistered digital asset called Shopin token during the ICO.

The defendants allegedly sold the unregistered Shopin token to investors during a “pre-sale” in August 2017 and to the general public during an ICO starting in March 2018 until April 2018.

According to the SEC, Shopin conducted an “illegal” ICO citing the fact that “there was no registration statement filed or in effect for the offers and sales of the Shopin token and no exemption from registration applied.”