The U.S. SEC fines Coinme, Up Global, and their leader Neil Bergquist nearly $4 million

ChainCatcher News, the U.S. SEC has fined Coinme, Up Global, and the executives of these two companies, including Neil Bergquist, a total of nearly $4 million.

The fines announced by the SEC on Friday relate to an ICO of a cryptocurrency asset called UpToken. The SEC stated in a release that Coinme and Up Global misled investors during their ICO in 2017.

The defendants accepted the fines but did not admit or deny any wrongdoing. Coinme and Up Global will pay a total of $3.77 million, while Bergquist will pay $150,000.

It is reported that Coinme operates a network of cryptocurrency ATMs that allow users to withdraw cash in exchange for Bitcoin and other cryptocurrencies. As a reward for Coinme ATM customers, the company stated that 1% of each transaction is used to purchase UpToken. The tokens are then given to customers in the form of a 1% cashback.

When announcing the settlement of the charges, the SEC stated that Bergquist and Up Global took steps to reduce the demand for Coinme to purchase UpToken after the ICO. It also accused the parties of "intentionally or recklessly" exaggerating the amount raised in the ICO. Bergquist has also been banned from serving as an officer or director of a public company for the next three years. (source link)