New York-based firms GTV Media Group Inc. and Saraca Media Group Inc. as well as Voice of Guo Media Inc. from Arizona will pay $ 539 million at the request of the SEC for an unregistered ICO.
Between April and June 2020, these firms raised $ 487 million from over 5,000 US investors, urging them to acquire the digital assets of G-Coins and G-Dollars, according to a statement from the US Securities and Exchange Commission (SEC). The department considered them unregistered securities. Firms disseminated information about their offerings on GTV and Saraca websites, as well as on YouTube, Twitter and other social networks.
“Issuers who intend to enter the market through a public offering of securities must provide investors with the necessary information in accordance with federal securities laws. Otherwise, we will take measures to protect the injured investors, ”said Sanjay Wadhwa, deputy director of the SEC’s enforcement department.
GTV and Saraca did not admit or deny the agency’s allegations of violating the Securities Act of 1933, and agreed to pay a $ 434 million fine, $ 16 million in pre-judgment interest, and $ 15 million administrative sanctions for each firm. … Voice of Guo agreed to return the illegally received $ 52 million and pay interest for the period before the court decision in the amount of $ 2 million and an administrative fine in the amount of $ 5 million. In the future, firms are prohibited from organizing the sale of digital assets.
Last week, the SEC accused Rivetz of conducting an unregistered ICO. In addition, the Commission has warned cryptocurrency exchange Coinbase that it will file a lawsuit against it if the platform launches a highly profitable product for the USDC stablecoin.
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