The U.S. Securities and Exchange Commission (SEC) charged GTV Media Group, Saraca Media and Voice of Guo Media with unregistered offers of shares and digital assets. The defendants agreed to pay more than $539 million to settle the suit.
Today, we announced charges to three media companies for illegal unregistered offerings of GTV common stock & a digital asset security referred to as G-Coins or G-Dollars. Over $539 million will be paid in settlement & distributed to investors.
More:https://t.co/XAFW1pi4vN pic.twitter.com/Sx6SvX2cEn
— SEC (@SECGov) September 13, 2021
According to the SEC, from April to June 2020 the companies unlawfully issued GTV common stock and digital securities in the form of tokens called G-Coin or G-Dollar.
The defendants disseminated information about the asset offerings through the GTV and Saraca websites, as well as on social media.
According to the regulator, the firms raised about $487 million from more than 5,000 investors, including U.S. residents. Both of the firm’s securities offerings were not registered.
“Issuers seeking access to markets through a public offering of securities must provide investors with disclosures in accordance with federal laws. If they do not do so, the Commission will seek ways to protect victims, including canceling the offering and returning funds,” — said an SEC spokesperson.
Not admitting nor denying the Commission’s findings, the firms agreed to pay compensation of more than $486 million plus roughly $18 million in interest. GTV and Saraca will also pay $15 million each in civil penalties, and Voice of Guo — $5 million.
As reported in 2020, the SEC collected more than $4.68 billion in penalties and fines. A quarter of that amount—$1.26 billion—came from token sales.
Follow ForkLog on Facebook.