The SEC has taken action against 3 corporations owned by Chinese wealthy person Guo Wengui for commingling the yield from 2 unregistered securities offerings.
The U.S. Securities and Exchange Commission (SEC) has charged 3 of Chinese wealthy person Guo Wengui’s corporations over an initial coin offering(ICO) and initial public offering (IPO) that fetched around $487 million combined.
The not so famous Wengui, conjointly referred to as Miles Kwok or Miles Guo, is an exiled Chinese businessperson who presently resides in New York. Wengui is known for his arguable political takes and his ties to Donald Trump friend, Steve Bannon.
The SEC submitted a stop and abstain order on Sept. 13, with the documents showing that Guo’s corporations have united to pay a settlement with the SEC within fourteen days.
The SEC made public 2 unregistered securities offerings from Guo’s companies, with GTV Media firms, Saraca Media Group and Voice of Guo Media conducting an initial offering between April 1 and June 2020. Saraca and Voice of Guo, dubbed the “G Entities,” jointly conducted an ICO over a similar time.
The ICO raised $34 million from investors seeking exposure to the firms’ G-Dollars — a virtual currency the establishment claimed may be changed for gold or decree currency or wont to purchase merchandise on the G Entities’ on-line platform.
The SEC found that the G Entities didn’t offer investors with data relating to however its reputed digital quality and platform would be developed, adding:
“The G Entities have nonetheless to develop or distribute the digital assets sold within the Coin giving or a platform that might enable users to interact with or sell digital assets.”
Proceeds from the ICO were commingling with the funds raised in its $453 million stock giving that imagined to distribute 100% of GTV’s stock. The unregistered initial offering attracted participation from 5,500 people.
The companies have united to pay $486.6 million in fines, prejudgment interest of $17.6 million and a civil penalty of $35 million combined.