SEC Sues United Data for $42 Million
The American Securities and Exchange Commission has searched for exchanges or firms maintaining fraudulent initial coin offerings for more than twelve months. Today they announced their latest lawsuit against a blockchain firm that provided illegal ICO’s, earning more than $42 million in the process. SEC confirmed that the founder of United Data, Eran Eyal conducted an unregistered security under the name ShopinTokens.
These tokens were aimed to assist with universal consumer profiles, which would be managed via blockchain. Consumers would receive their purchasing histories and receive products recommended from those purchases. However, the August 2017 to April 2018 ICO was a scam against investors. Eran Eyal hasn’t been located to face his criminal charges and a court date in the United States.
The Fake Project
The American Securities and Exchange Commission alleges that the ShopinToken wasn’t ever maintained on a valid platform. SEC claims that Eran Eyal continuously lied to investors, making them wait prolonged periods for their anticipated tokens. However, from the numerous complaints received, SEC determined that United Data misrepresented their ShopinToken.
Eran Eyal was also compliant in false advertising, claiming that his firm had partnered with well-known retailers. This governing regulator completed an extensive investigation on Eyal, who spent more than $500,000.00 on Rent and Entertainment Expenses.
The New York Regional Office’s Director, Marc Berger, spoke on behalf of the Securities and Exchange Commission. He stated: “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. 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.”
Violated Legislation
The Securities and Exchange Commission noted the violations of legislation that were made by the United Data Exchange included Antifraud. This extended to the lack of registration provisions, which has prompted the SEC to search for the ultimate form of punishment. This will consist of civil penalties, permanent injunctions, and removal of Eran’s trading license. However, before any of these crimes can be resolved, Eran Eyal must first be located by authorities
Haydn Franklin
