SEC takes action against $ 500 million Chinese billionaire companies

The US Securities and Exchange Commission has indicted three companies owned by Chinese billionaire Guo Wengui on Initial Coin Offerings (ICOs) and Initial Public Offerings (IPOs), which raised approximately $ 487 million.

The infamous Wengui, also known as Miles Kwok or Miles Guo, is an exiled Chinese businessman currently based in New York. Wengui is known for his controversial political views and connections with Donald Trump’s confidante Steve Bannon.

The SEC filed an injunction on Sept. 13, with documents showing that Guo’s companies agreed to settle with the SEC within 14 days.

The SEC outlined two unregistered securities offerings from Guo’s companies, 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, dubbed “G Entities,” also performed during the same period.

The ICO raised $ 34 million from investors looking to get involved in the companies’ G-dollars – a virtual currency that the issuer claims to be exchanged for gold or fiat currency, or to purchase goods on the online -Platform can be used by G Entities.

The SEC found that G Entities failed to provide investors with information about the development of the platform and its alleged digital assets, adding:

“G-Units have yet to develop or distribute digital assets that are sold in the Coin Offering or a platform that enables users to trade or sell digital assets.”

Related: The SEC chairman doubles as he calls on the crypto firms to “come and talk to us.”

Proceeds from the ICO will be accompanied by funds raised through a $ 453 million share offering that will distribute 10% of GTV’s common stock. 5,500 people took part in the unregistered IPO.

The companies agreed to pay $ 486.6 million in fines, $ 17.6 million in interest and $ 35 million in civil fines combined.