SEC serves $4M in fines to Coinme over ‘misleading’ UpToken ICO

On April 28 the Securities and Exchange Commission (SEC) said it settled charges against Coinme, its subsidiary Up Global SEZC and the CEO of both companies, Neil Bergquist.Up Global agreed to pay a $3.52 million charge, for which Coinme was likewise responsible. Different charges against Coinme and Bergquist of $250,000 and $150,000 respectively were likewise leveled, which both have agreed to pay.In its order, the SEC declared Coinme, Up Global and Bergquists Initial Coin Offering (ICO) of UP between October to December 2017 was a financial investment contract under the Howey test and were consequently unregistered securities offerings.The September 2017 press release announcing UpToken. Source: CoinMarketCapBergquist and Up Global likewise made “incorrect and deceptive declarations” about the need for UpToken and the amount raised in the offering according to the SEC.Up Global said Coinmes purchasing of UP to money its ATM benefits program would create constant need for the token, however the SEC stated:”Bergquist and Up Global took steps prior to and throughout the ICO to get an UpToken supply that would considerably lower Coinmes need to purchase UpToken after the ICO for the ATM rewards program.