SEC takes action against Chinese billionaire’s companies over $500M offerings


The United States Securities and Exchange Commission (SEC) has actually charged 3 of Chinese billionaire Guo Wengui’s companies over a preliminary coin offering (ICO) and going public (IPO) that brought around $487 million integrated.

The notorious Wengui, likewise called Miles Kwok or Miles Guo, is a banished Chinese entrepreneur who presently lives in New York. Wengui is understood for his questionable political takes and his ties to Donald Trump confidant, Steve Bannon.

The SEC sent a stop and desist order on Sept. 13, with the files revealing that Guo’s companies have actually consented to pay a settlement with the SEC within 2 week.

The SEC detailed 2 unregistered securities offerings from Guo’s companies, with GTV Media Group, Saraca Media Group and Voice of Guo Media carrying out an IPO in between April 1 and June 2020. Saraca and Voice of Guo, called the “G Entities,” likewise carried out an ICO over the very same duration.

The ICO raised $34 million from financiers looking for direct exposure to the companies’ G-Dollars — a virtual currency the provider declared might be exchanged for gold or fiat currency or utilized to acquire items on the G Entities’ online platform.

The SEC discovered that the G Entities did not offer financiers with details concerning how its supposed digital property and platform would be established, including:

“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.”

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Proceeds from the ICO were combining with the funds raised in its $453 million stock offering that supposed to disperse 10% of GTV’s typical shares. The unregistered IPO brought in involvement from 5,500 individuals.

The companies have actually consented to pay $486.6 million in fines, prejudgment interest of $17.6 million and a civil charge of $35 million integrated.