After the exchange platforms, the American stock market watchdog SEC reproaches Coinme, an exchange and Bitcoin ATM operator, for not registering its “deceptive” ICO with its services.
Coinme is a Bitcoin ATM operator. Coinme issued a token in 2017 via an ICO.
Indeed, Coinme and its subsidiary UpGlobal SEZC had issued UpToken (UP) tokens six years ago now, in order to create “a global ATM network.” The goal was to install more ATMs around the world, and to reward initial investors with cashbacks and discounts. In total, it created 30 new ATMs, thanks to the $3.6 million raised.
Coinme made false and misleading statements?
However, the U.S. Securities and Exchange Commission has once again come down on this crypto player. The regulator accused Coinme, its subsidiary Up Global and its CEO-founder Neil Bergquist of conducting this token sale in 2017 without first registering the offering.
In addition, the bitcoin vending machine specialist and its director made false and misleading statements regarding UpToken’s application and the amount collected, according to the SEC.
On Friday, the regulator announced that the group had agreed to pay fines totaling nearly $4 million to settle the charges.
Coinme, Up Global and Bergquist agreed, without admitting or denying the SEC’s findings, to settle the charges…In addition, Up Global agreed to pay a $3,520,000 fine; Coinme agreed to pay a separate $250,000 fine; and Bergquist agreed to pay a $150,000 fine. The SEC’s order also prohibits Bergquist, for a period of 3 years, from serving as an officer,” a statement said.
UpToken’s marketcap, which exceeded $30 million in spring 2018, is now less than $60,000.
“UpToken is a reward for our ATM customers. Coinme uses 1% of each ATM transaction to purchase UpToken, which is given to customers as a 1% cash back reward,” the crypto ATM operator’s website reads.
