coinquora.com
- SEC charges Chinese billionaire’s companies $487 million
- Guo’s firms were sued over ICO and IPO.
- The companies have agreed to pay fines of $486.6 million
Chinese companies targeted by the SEC over $500M offerings. The United States Securities and Exchange Commission (SEC) has sued three companies owned by Chinese billionaire Guo Wengui. The SEC charged Guo’s companies to the tune of $487 million. It combines an initial coin offering (ICO) and an initial public offering (IPO).
The businessman, also known as Miles Kwok or Miles Guo, is recognized for his outspoken political views. Wengui allegedly has ties to Trump’s pal, Steve Bannon.
On September 13, the SEC issued a cease and desist order. The SEC paperwork indicating that Guo’s companies had agreed to pay the SEC a settlement within 14 days.
The SEC traced two unregistered securities offerings from Guo’s firms. The SEC case file also stated that GTV Media Group, Saraca Media Group, and Voice of Guo Media conducted an IPO between April 1 and June 2020. Saraca and Voice of Guo, jointly called the ‘G Entities’, were also indicted for conducting an ICO over the same time.
Investors seeking exposure to the firms’ G-Dollars — a virtual currency that the issuer claimed could be traded for gold or fiat money or used to purchase items on the G Entities’ online platform — contributed $34 million to the ICO.
As per the SEC’s findings, G Entities failed to explain how its supposed digital asset and platform would be developed.
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
A portion of the ICO proceeds linked to the funds raised by GTV’s $453 million stock offerings purported to distribute 10% of its common shares.
In the end, the firms agreed to pay fines of $486.6 million and pre-judgment interest of $17.6 million, as well as a civil penalty of $35 million.