Additionally, the defendants alleged falsely listed a prominent Silicon Valley blockchain entrepreneur as its advisor their marketing materials. Mr. Eyal also allegedly misleadingly suggested that a successful online company was an investor in Shopin.
Furthermore, the SEC alleged that Mr. Eyal improperly used proceeds from the fraudulent ICO to pay for personal expenses and satisfy a legal judgment against his previous company.
The SEC said Mr. Eyal and Shopin committed securities fraud. It is seeking a court order permanently restraining and enjoining the defendants from violating federal securities laws.
Holding defendants accountable for conducting illegal ICO
In a statement, SEC New York Regional Office Director Marc Berger, commented, “As alleged in today’s action, the SEC seeks to hold Eyal responsible for scamming innocent investors with false claims about relationships and contracts they had secured in support of a blockchain-based universal shopper profile,”
He added, “Retail investors considering an investment in a digital asset that meets the definition of a security must be afforded the same truthful disclosures as in any traditional securities offering.”
