More about the proceedings
The SEC accused the company of not registering an offer of securities, which means the UpToken crypto coin. It was in 2017. She also accuses them that the defendants misled users.
The SEC reported that the CEOs of Bergquist companies together with Up Global, without informing their investors, could secure a stock of UP tokens. According to the agency, this would greatly reduce the need for the main company to purchase tokens after the ICO. At the same time, the amounts received were overstated, intentionally or not.
At the same time, the companies and the CEO-specialist himself did not agree with these conclusions. But they didn't refute them either. The defendants also found a compromise with the regulator – to pay penalties of $ 3.5 million. Additionally, the provider will have to pay 250 thousand dollars, and the top manager - 150 thousand dollars. Specialists have also been banned from holding senior positions in companies.
Recall that two years ago, Coinme entered into a partnership with the MoneyGram payment service. He also began to place his cryptocurrencies in the Walmart trading network.