SEC Charges Company That Raised Over $42 Million From Crypto Investors

December 11, 2019 11:20 PM UTC

According to the SEC charges, the company defrauded investors in an initial coin offering (ICO) that raised $42 million in cryptos from investors. The company in question is called UnitedData Inc and was founded by Eran Eyal. According to the SEC, Eran conducted an unregistered securities offering.

According to Eran, the money raised would be used to create universal shopper profiles and maintain the network, however, it seems that Eyal never used the money for that purpose and lied to investors in several occasions.

”The SEC also alleges that Eyal misappropriated investor funds for his personal use, including at least $500,000 used for rent, shopping, entertainment expenses, and a dating service.”

The SEC’s complaint charges Eyal and his partner Shopin with ‘violating the antifraud and registration provisions of the federal securities laws’.

Not Eyal’s First Time

 

Funny enough, this wasn’t the first time Eran Eyal was accused and charged with fraudulent activities. Back in 2018, Eyal was accused of allegedly stealing around $600,000 from investors.

“As we allege, this massive securities fraud scheme bilked investors out of hundreds of thousands of dollars,”

said, Attorney General Underwood

Eyal could have been facing up to 5 to 15 years in prison if convicted.

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