Eric Zhu, blockchain engineer for the Game Coin project, has settled fraud allegations with the SEC. He will pay $823K if the court approves the final judgment.
Fraud Scheme with Game Coin
The SEC claims Zhu misappropriated $553K from Game Coin investors using his role for personal gain. The token was allegedly sold as a security through liquidity pools.
Eric Zhu's Role
Eric Zhu, an experienced blockchain engineer, was hired to code for GME. The token was offered via liquidity pools for trading. If approved, Zhu will pay $553K in restitution, $120K in interest, and a $150K civil penalty without admitting guilt.
Future of SEC and Crypto Regulation
The resolution of Zhu's case could be a final achievement for the SEC under Gary Gensler's leadership. Gensler has advised to increase regulation on altcoins.
The settlement with Eric Zhu is expected to be a significant event in the SEC's fight against fraud in the crypto industry. The emphasis on increased regulation highlights the commission's commitment to protecting investor interests.
