The US Securities and Exchange Commission (SEC) has imposed a fine of $3.9 million on Up Global and Coinme for offering and selling unregistered digital assets securities. The SEC has also issued cease and desist orders against both firms. The investigation focused on a token sale conducted by Up Global in which Coinme acted as an unregistered broker-dealer. The action serves as a reminder to companies that digital asset securities must comply with federal securities laws.
The U.S. Securities and Exchange Commission (SEC) has taken action against UpToken and its related parties, imposing cease-and-desist orders and fines in the process. The SEC has named Up Global, Coinme, and Neil Bergquist – CEO of both firms – for their involvement in a cryptocurrency securities offering. The ICO offering saw Ethereum-based UpToken sold to fund the deployment of new Coinme ATMs, which raised around $3.65m. As part of the complaint, the SEC accuses the participants of improperly selling securities without registration or exemption from registration. In addition to this, the SEC claims that Up Global and Bergquist misled investors by creating a false impression of demand, having already secured a large supply of UpToken both before and during the ICO. As part of the order, the three parties are required to destroy all UpToken in their possession, and refrain from participating in any cryptocurrency securities offering. Furthermore, fines totaling around $3.92m have been levied against all three parties.
SEC Fines Parties Involved in UpToken ICO
Regulators in the US continue their recent trend of cracking down on cryptocurrency securities offerings. The latest target is UpToken which has seen the U.S. Securities and Exchange Commission (SEC) impose heavy penalties. The SEC has accused Up Global, Coinme, and Neil Bergquist of improperly selling securities without first registering or obtaining an exemption from registration. The ICO offering, which saw UpToken sold to raise funds for new Coinme ATMs, raised around $3.65m. The SEC also claimed that Up Global and Bergquist misled investors by creating a false impression of scarcity, having already secured a large supply of UpToken before the ICO commenced. The SEC’s order will require all parties to destroy all UpToken in their possession, and they will also be barred from participating in any cryptocurrency securities offerings.
UpToken ICO Participants Fined and Ordered to Destroy all Tokens
The SEC has ordered Up Global, Coinme, and Neil Bergquist to destroy all UpToken in their possession, and to refrain from participating in any cryptocurrency securities offerings. The SEC accused the parties of improperly selling securities without registration or exemption, and of misleading investors about demand for UpToken by securing a significant supply before the ICO started. The offering raised around $3.65m. Fines compounded the verdict; Up Global will pay $3.52m, CoinMe will pay $250,000, and Bergquist will pay $150,000.
SEC hands down penalties to UpToken ICO participants
The SEC has fined Up Global, Coinme, and Neil Bergquist for their involvement in a cryptocurrency securities offering connected to Ethereum-based UpToken. The ICO offering raised around $3.65m and saw Up Global and Bergquist, CEO of both companies, improperly selling securities without registration or exemption, whilst misleading investors about demand by ensuring a sizeable supply was secured prior to the ICO starting. As well as requiring all parties to destroy all UpToken in their possession, the SEC has levied fines; Up Global will pay $3.52m, CoinMe will pay $250,000, and Bergquist will pay $150,000. The three parties will also have to refrain from taking part in any cryptocurrency securities offering.