SEC Fines Coinme and Up Global Nearly $4M for Misleading Investors in ICO
Coinme, Up Global, and Neil Bergquist, the leader of both firms, have been fined nearly $4 million by the US Securities and Exchange Commission (SEC).
The firm claims to reward customers by using 1% of each transaction to purchase UpToken, which is then given to customers as a 1% cashback reward.
The SEC alleges that Bergquist and Up Global took measures that would decrease Coinme’s need to purchase UpToken after the ICO and also accused them of knowingly or recklessly inflating the amounts raised by the ICO.
Meanwhile, in another case, five individuals, including the CEO and co-founder of HYDRO, Michael Kane, have been charged in relation to market manipulation by the SEC.
The court ruled that the defendants artificially inflated HYDRO’s market by using a trading bot to place orders they did not intend to fulfill, creating the illusion of investor interest.
Hydrogen Technology and Kane are now subject to fines of $2.8 million and $260,000, respectively.