US SEC Charges Shopin ICO for Breaking Securities Law

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The US Securities and Exchange Commission cracked down on another ICO from the boom times of token sales. After receiving complaints, the SEC charged the founders of the Shopin ICO for securities fraud.Shopin raised as much as $42 million during the token sale running from August 2017 to April 2018. The Shopin platform was supposed to decentralize shopping information and keep a record of online purchases. The reward system based on Shopin Tokens made the SEC deem the asset an unregistered security, promising future earnings.The SEC reports that the project’s founder, Eran Eyal, lied to investors about Shopin partnerships with big retailers, as well as connections to large crypto entrepreneurs. The SEC also discovered Eyal had misappropriated some of the funds, spending as much as $500,000 for personal expenses and entertainment.Almost all ICOs are potential targets of the SEC, but the measures remain different. Some projects have folded, while others,…

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