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.
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.
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.