Alleged Shopin ICO Fraudster Pays $450K Fine in Ether

Eran Eyal, who raised $42 million in an allegedly fraudulent initial coin offering, settled charges with the SEC and paid a $450,000 fine in ether.

AccessTimeIconJun 23, 2020 at 3:28 p.m. UTC
Updated Sep 14, 2021 at 8:55 a.m. UTC

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.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.