The US Securities and Exchange Commission (SEC) has served a $4 million fine to Coinme over its initial coin offering (ICO) of UpToken.
Based on the SEC’s order, the UPToken ICO, which Coinme and its subsidiary conducted from October 2017 to December 2017, was an investment contract based on the Howey test.
The SEC also believes that the company’s offer of unregistered securities to crypto investors and traders was “misleading,” necessitating the fine.
SEC Serves Coinme $4 Million In Fines
Recently, the SEC stated that Coinme’s misleading marketing strategy violated securities laws as Coinme did not register the tokens as securities, and the company did not qualify for an exemption from registration requirements.
According to the SEC’s filing, the company raised about $3.6 million from its initial coin offering. This amount was to fund the expansion of the company’s Bitcoin ATMs. Notably, the firm added 30 ATMs using the funds generated from the ICO.
Related Reading: Floki Inu Sees Double-Digit Gains Amid Market Downturn, Here’s Why
The charges from the SEC also extended to the company’s CEO, Neil Bergquist, and the subsidiary firm, Up Global SEZC. Aside from the estimated $4 million penalty on Coinme and Bergquist, there is a separate penalty against them: a $250,000 and $150,000 fine, respectively. Both parties have agreed to pay all fines and desist from further violations of securities laws.
The SEC believes that crypto investors and traders are entitled to truthful disc
Go to Source to See Full Article
Author: Eli Dambel
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
