Home / Blockchain News / Chinese Clampdown Continues, ICO Head Faces 15 Years in Prison

Chinese Clampdown Continues, ICO Head Faces 15 Years in Prison

The Chinese crackdown the ICO head faces 15 years in prison, as the Chinese government has recently begun another crackdown on cryptocurrency investors. And the latest stage in this effort is focused on the country’s big three internet giants Baidu, Alibaba and Tencent (commonly referred to together as BAT).

The Baidu search engine, known as China’s Google, has reportedly closed a number of its popular crypto chat rooms, including “Digital Currency Bar” and “Virtual Currency Bar,” only explaining that this was done “in accordance with relevant laws, regulations and policies.” Alibaba’s Ant Financial announced it will restrict or ban Alipay accounts if they would take part in cryptocurrency trades. Tencent stated it will monitor its Wechat network in real-time to block crypto trading using the app.

Eran Eyal, the CEO, and Founder of Shopin which raised over $42.5 million in an ICO back in April is facing up to fifteen years in prison.

The New York State Attorney General has charged Eyal for doing fraud for more than 6,000,00 investors, he made a false promise for inviting investors and then making fake crypto and indulging them.

AG Barbara Underwood said “As we allege, this massive securities fraud scheme bilked investors out of hundreds of thousands of dollars,” “Defrauding New Yorkers through false representations and fabrications about a business will not be tolerated by my office – and we’ll continue to do what it takes to root out and prosecute securities fraud.”

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