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UnitedData charged for a 42 mln ICO scam

Dec 13 2019
By
Jonathan Smith

The Securities and Exchange Commission (SEC) in the U.S. has charged  Eran Eyal, founder of UnitedData, for conducting a fraudulent initial coin offering (ICO), which has scammed investors of some 42 million USD with unregistered securities.

 

Shopin was presented as a block chain project, which however never created a functional platform despite the accumulated funds. Through selling Shopin tokens UnitedData said it will gather funds to create universal shopper profiles, maintained on the block chain, that would track customer purchase histories across online retailers and recommend products based on the information gathered. 

 

Shopin tokens were sold between August 2017 to April 2018 raising over 42 million USD. 

 

According SEC however UnitedData and Shopin never created a functional platform. On top of that  Eran Eyal repeatedly lied about partnerships with well known retailers and the involvement of prominent investors.

 

Eyal is also accused for spending over 500 000 USD customer funds for his personal use.

 

SEC also says Eyal violated anti fraud and registration provisions of the federal securities laws.

 

“As alleged in today’s action, the SEC seeks to hold Eyal and Shopin responsible for scamming innocent investors with false claims about relationships and contracts they had secured in support of a blockchain-based universal shopper profile”, Marc P. Berger, director of the SEC’s New York regional office said, adding that “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. 

TAGS: UnitedData  Shopin  scam  ICO  SEC 
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