Final judgment reached in ICO fraud cause brought by SEC against Shopin founder
June 23, 2020, 11:22AM EDT
1 min read
A lawsuit brought by the U.S. Securities and Exchange Commission (SEC) last year against the founder of a company that launched an allegedly fraudulent initial coin offering (ICO) has concluded.
The final judgment was handed down on Tuesday, according to a statement from the SEC. Shopin and its founder Eran Eyal were sued in mid-December and accused of misappropriating funds obtained from a $42 million ICO.
The $450,000 in question – $422,100 in ill-gotten gains plus $34,940 in prejudgment interest – "is deemed satisfied by Eyal's payment of approximately 3,105.78 Ether tokens pursuant to a prior plea agreement in a New York State criminal action that addressed conduct including the acts at issue in the SEC's action."
Eyal was convicted following a court action brought by the New York Attorney General in December. It was at that time that the ETH holdings were surrendered to state officials.
According to the agreement between the SEC and Eyal, the Shopin founder neither admitted or denied the SEC's previous allegations.