The U.S. Securities and Exchange Commission (SEC) announced on Friday that Coinme, a Bitcoin (BTC), kiosk company, had agreed to pay almost $4 million in order to settle allegations by the SEC alleging that it was a party to an unregistered securities offering.

In the order, Coinme, Up Global SEZC, and Neil Bergquist were named for allegedly conducting a crypto fundraiser, also known as an Initial Coin Offering (ICO), in 2017 for the “UpToken.” The SEC accused both parties of making “false and misleading statements regarding the demand for UpToken, and the amount raised during the offering.”

The order is just the latest in the string of enforcement actions by the Securities Regulator and heavy fines that have forced some companies to shut down all, or a part of their operation.

The SEC alleged Bergquist worked with Up Global to obtain UpToken supplies “that would significantly reduce Coinme’s requirement to purchase UpToken following the ICO”, leading to “publicly inflated amount raised”.

According to the regulator, Up Global has agreed to settle charges by paying a $3.52 million penalty. Coinme also agreed to pay $250,000 and Bergquist $150,000.

The announcement stated that “The SEC’s order also prohibits Bergquist from acting as a director or officer of a publicly traded company for a three-year period.”

Coinme offers bitcoin ATMs around 49 U.S. States has added popular crypto tokens at its grocery store kiosks since August.

CoinDesk contacted Coinme to get a comment.

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