The United States Securities and Exchange Commission (SEC) has fined three billionaire Guo Wengui companies a total of around $ 487 million for an ICO and initial public offering.
Guo Wengui – Chinese billionaire
Wengui, also known as Miles Kwok or Miles Guo, is an exiled Chinese businessman currently living in New York. He is known for his controversial political views and connections with former President Donald Trump’s confidante Steve Bannon.
The SEC filed an injunction on Sept. 13, with documents showing that Guo’s companies agreed to a settlement with the SEC within 14 days.
The regulator quoted Guo’s company as conducting unregistered securities offerings, with GTV Media Group, Saraca Media Group and Voice of Guo Media going public from April 1 to June 2020. Saraca and Voice of Guo, known as “G Entities,” also performed during the same period.
The ICO raised $ 34 million from investors seeking exposure to G-Dollars – a cryptocurrency the company issues and claims to be convertible into gold or fiat, or used for trading. Buy goods on the G Entities online platform.
The SEC found that G Entities did not provide investors with any information regarding the development of the platform and its alleged digital assets.
“G Entities still needs to develop or distribute digital assets sold during ICOs or a platform that enables users to trade digital assets.”
In addition to the $ 34 million raised from the ICO, the IPOs brought in $ 453 million in revenue with the participation of 5,500 people.
In light of the allegations, the companies agreed to pay a total of $ 486.6 million in fines, $ 17.6 million in interest and a $ 35 million civil fine.
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