Benzinga - The U.S. Securities and Exchange Commission (SEC) announced settled charges against Seattle-based Coinme Inc., its subsidiary Up, Global SEZC (Up Global) and Neil Bergquist for conducting unregistered offers and sales of a cryptocurrency asset called UpToken.
The SEC's order also accused Up Global, Coinme and Bergquist, who was the founder and CEO of the companies, of making false and misleading statements about the demand for UpToken and the amount raised during the offering.
From Oct. 16, 2017 to Dec. 15, 2017, Coinme, Up Global and Bergquist marketed the financial benefits of investing in UpToken, claiming that Coinme would purchase UpToken in the secondary market after the ICO.
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However, the SEC found Bergquist and Up Global had taken steps to acquire a supply of UpToken that would significantly reduce Coinme's need for post-ICO purchases and had knowingly or recklessly inflated the amounts raised during the ICO.
Coinme, Up Global and Bergquist settled the charges without admitting or denying the SEC's findings. They also agreed to cease and desist from future violations and comply with specific undertakings.
Up Global will pay a $3.52 million penalty, Coinme will pay a separate $250,000 penalty and Bergquist will pay a $150,000 penalty. Bergquist will be barred from acting as an officer or director of a public company for three years.
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