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The Securities and Exchange Commission (SEC) has recently taken action against three companies owned by Guo Wengui, a Chinese billionaire for blending the proceeds from two unregistered ICO and IPO. Guo Wengui is also known as Miles Kwok or Miles Guo and is an expelled businessman who is residing in New York at present.
SEC Charges Guo Wengui for Unregistered ICO and IPO
Guo Wengui, who is also well known for his ties to Steve Bannon, a Donald Trump confidant, and his controversial political comments.
On September 13, the SEC submitted a terminate and abstain order, with the documents revealing that the companies of Guo have come to an agreement to pay a settlement with the Securities and Exchange Commission (SEC) within 14 days.
The order mentioned the names of two unregistered securities offerings from his firms, with GTV Media Group, Saraca Media Group, and Voice of Guo Media conducting an Initial Public Offer between April 1 and June 2020.
The ICO reportedly raised $34 million from investors seeking exposure to the G-Dollars of the firms, which is a virtual currency the issuer claimed could be exchanged for gold or fiat currency.
In addition to this, it should be noted that the SEC found that the G Entities did not provide investors with data regarding how its purported digital asset and platform would be developed, adding:
“The G Entities have yet to develop or distribute the digital assets sold in the Coin Offering or a platform that would allow users to transact with or sell digital assets.”
ICO Proceedings Mingling with the Funds Raised
As revealed, the proceeds from the ICO were mingling with the funds raised in its $453 million stock offering that professed to distribute 10% of GTV’s common shares.
The unregistered IPO allured participation from over 5,500 people.
Along with this, the companies have come to an agreement to pay $486.6 million in fines, prejudgement interest of $17.6 million, and a civil penalty of $35 million combined.