Shopin

Shopin, operating under UnitedData, Inc., was presented as a retail technology venture founded by Eran Eyal. The company initiated its operations with the ambitious goal of revolutionizing the retail sector by creating a decentralized platform for shopper data.

The stated business model was to develop universal shopper profiles maintained on a blockchain, designed to track customer purchase histories across various online retailers. The platform intended to use this data to provide personalized product recommendations. The target clients were online retailers who would, in theory, gain unprecedented shopper intelligence to better compete in the e-commerce market. Revenue was to be generated through an Initial Coin Offering (ICO) of the Shopin Token, which would also facilitate a new advertising model where shoppers were rewarded for sharing their data. The token sale took place from approximately August 2017 to April 2018, raising over $42 million from numerous investors.

However, Shopin's operations were found to be fraudulent. Investigations by the U.S. Securities and Exchange Commission (SEC) revealed that the company never created a functional platform. The firm made material misrepresentations to investors, including false claims about partnerships with well-known retailers and the successful implementation of pilot programs that never occurred. Founder Eran Eyal, a serial entrepreneur with previous ventures such as Springleap, was the central figure in this enterprise. Instead of being used for platform development, a significant portion of the investor funds, at least $500,000, was misappropriated by Eyal for personal expenses, including rent, shopping, and dating services. In December 2019, Eyal pleaded guilty to felony charges for orchestrating the fraudulent ICO. He was subsequently convicted, ordered to pay restitution, banned from serving as a company officer in New York for three years, and was eventually deported from the US. The SEC charged both Eyal and Shopin with violating federal securities laws, leading to a final judgment against Eyal in June 2020.

Keywords: Shopin token, Eran Eyal, UnitedData Inc., ICO fraud, SEC investigation, blockchain retail, cryptocurrency scam, shopper profile, retail intelligence, securities fraud, digital asset fraud, token sale, Springleap, New York Attorney General, crypto scheme, investor fraud, misappropriation of funds, decentralized application, fake ICO, financial crime