The U.S. SEC imposes a nearly $4 million fine on Coinme for unregistered securities issuance

2023-05-01 13:12:08

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ChainCatcher News: The U.S. Securities and Exchange Commission (SEC) has imposed a fine of nearly $4 million on the cryptocurrency trading platform Coinme for allegedly offering unregistered securities and making "misleading statements" regarding its crypto token UpToken (UP).

On April 28, the SEC announced that it had reached a settlement regarding the charges against Coinme, its subsidiary Up Global SEZC, and the CEOs of both companies, Neil Bergquist. Up Global has agreed to pay a fine of $3.52 million, and Coinme will also bear this fine.

Additionally, fines of $250,000 and $150,000 were imposed on Coinme and Bergquist, respectively, both of whom have agreed to pay. In its order, the SEC alleged that the UP initial token offering (ICO) conducted by Coinme, Up Global, and Bergquist between October and December 2017 constituted an investment contract under the Howey test, and therefore was an unregistered securities offering. (Source link)

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U.S. SEC Coinme fine

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