SEC fines Coinme for its ICO UpToken

The stock exchange gendarme American reproaches Coinmean exchange and operator ofBitcoin ATMfor not registering his ICOdeceptive ” with its services.

The Securities and Exchange Commission of the United States has again taken aim at an established player in the crypto sector. The regulator accused Coinmeits subsidiary Up Global and its CEO-founder Neil Bergquist for having conducted a sale of tokens in 2017 without having first registered the offer.

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In addition, the bitcoin vending machine specialist and its manager have made false and misleading statements regarding the application ofUpToken and the amount collected, according to the SEC.

On Friday, the regulator announced that the group had agreed to pay fines totaling nearly 4 million dollars to settle the lawsuit.

Coinme, Up Global, and Bergquist agreed, without admitting or denying the SEC’s findings, to settle the charges […] In addition, Up Global agreed to pay a fine of $3,520,000; Coinme agreed to pay a separate fine of $250,000; and Bergquist agreed to pay a fine of $150,000. The SEC’s order also prohibits Bergquist, for a period of 3 years, from serving as an officer,” a statement said.

The marketcap ofUpTokenwhich was over $30 million in the spring of 2018, is now under $60,000.

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“UpToken is a reward for our ATM customers. Coinme uses 1% of each ATM transaction to purchase UpToken, which is given to customers as a 1% cash back reward,” the crypto ATM operator’s website reads.

In recent months, the SEC has stepped up its actions against companies and platforms in this new industry.

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