Alleged Shopin ICO Fraudster Pays $450K Fine in Ether

A federal judge ordered Eran Eyal, the founder of the Shopin cryptocurrency, to pay $450,000 in fines last week as a result of allegations he committed fraud. 

The U.S. Securities and Exchange Commission (SEC) alleged in December 2019 that Eyal, an Israeli national, committed a $42 million initial coin offering fraud, claiming he misappropriated at least $500,000 in investor funds. The SEC’s suit came within days of another filed by the New York Attorney General’s office. 

He pleaded guilty to three securities fraud schemes alleged by the NYAG’s office at the time and agreed to turn over $450,000 in an undisclosed cryptocurrency. The SEC was satisfied by this arrangement, according to its press release.

As part of the June 19 judgment, Eyal did not admit or deny the SEC’s allegations. He paid the $450,000 fine in 3,105 ether, according to an SEC press release. He is barred from running public companies and enjoined from participating in any future digital asset securities offerings.

The move brings a close to the SEC’s seven-month case against Eyal. The SEC voluntarily dropped its claim against Eyal’s Shopin through the judgment. 

Immigration and Customs Enforcement deported Eyal to Israel in May, according to Ventureburn.