Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Shopin Founder Pleads Guilty to Orchestrating Fraudulent $42 Million ICO

Shopin Founder Pleads Guilty to Orchestrating Fraudulent $42 Million ICO

Shopin founder and former CEO Eran Eyal pleads guilty to felony charges for running a fraudulent initial coin offering that raised more than $42 million.
The SEC announced Wednesday that Eyal had been charged with defrauding investors by selling unregistered securities in the form of Shopin Tokens. While Eyal was supposed to develop a platform which would store and track customer profiles across different retailers, Shopin never built out the system, the agency alleged.

Instead, Eyal "misappropriated investor funds for his personal use," which included a dating service.

Eyal is accused of misappropriating at least $500,000 for his personal use.

A complaint alleges that Eyal "made at least four misrepresentations in marketing" the Shopin token, including by claiming that Shopin had successfully conducted a pair of pilot programs, that the company "had ongoing partnerships" with multiple retailers, that an unnamed "prominent Silicon Valley blockchain entrepreneur" was an advisor to the company and that an unnamed company was an investor in the project.

Eyal also pled guilty to criminal charges brought by the New York Attorney General's office, the release said.

According to a press release shared with CoinDesk on Thursday, Eyal pled guilty to operating three securities fraud schemes, including the Shopin ICO.

Roughly $450,000 in an undisclosed cryptocurrency will be turned over to the New York State Attorney General's office as part of the plea agreement, and Eyal will step down from his role as CEO of Shopin.

He will pay $125,000 in restitution and $475,000 in judgments to investors in Springleap, one of his previous enterprises. Former NYAG Barbara Uunderwood charged him with stealing $600,000 from the company's investors in 2017.

The SEC is also charging Eyal with failing to register the Shopin token sale as a securities sale, and is looking for a permanent injunction, disgorgement, civil penalties, to permanently bar Eyal from acting as an officer or director in any public company, or from participating in any future token sales.

Current NYAG Letitia James reportedly began investigating Shopin and Eyal as far back as June 2019, according to Ventureburn.

Eyal reportedly shared the names and email addresses of his investors with the investigators at the time.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
×