Three companies settle with SEC and pay $539 million after promoting token sales
Three companies settle with SEC and pay $539 million after promoting token sales By Angel Di Matteo @shadowargelAlthough

the settlement with the SEC

does not require the companies to admit wrongdoing, they will also cease operations and repay investors the capital originally raised.

***

The

U.S. Securities

and Exchange Commission (SEC)

reached

a settlement with three companies accused of conducting illegal securities offerings, which must collectively pay about $539 million

.

Companies reach a settlement with the SEC

This was confirmed by the director of

the

SEC’s Regional Office in New York, Richard R. Best, who noted that the companies GTV Media Group Inc., Saraca Media Group Inc. and Voice of Guo Media Inc

. incurred in violations of securities law by advertising their respective tokens, on which they made false promises to attract a greater number of investors.

According to a statement released by Best, these organizations promoted the sale of digital assets called “G-Coins” or “G-Dollars”,

for which they organized marketing campaigns on social networks, created audiovisual material and operated a website to channel operations. They raised an estimated $487 million from at least 5,000 investors.

In a statement issued by Best, it reads

:

“Thousands of investors purchased shares of GTV, G-Coins and G-Dollars based on offerings to the general public with limited disclosures. The remedies ordered by the Commission today, which include a fair distribution of funds, will provide significant relief to investors in these illegal offerings.”

‘In the agreement in place, the companies together agree to pay a total of USD $539 million to the regulator, in addition to making a corresponding return of the funds originally raised.

Focus on offerings within the crypto space

Despite

the fact that the established agreement does not provide for the recognition of wrongdoing on the part of the companies singled out, analysts highlight that this route was chosen in order to avoid much more catastrophic consequences

.

TV Media Group Inc. and Saraca Media Group Inc. also agreed to a cease and desist order and the payment of the USD $434 million raised during the sale of the aforementioned tokens, in addition to the payment of fines of USD $30 million in civil lawsuits. Voice of Guo

will also close its doors but the return will be equivalent to about USD $52 million, plus the payment of an additional USD $5 million to compensate those affected.

These latest settlements with the SEC come as part of the company’s ongoing efforts to follow up with the SEC.

The regulator’s increasingly rigorous enforcement, especially on firms and companies that pre-sold their tokens during the ICO boom. Keep in mind that a former prosecutor of the regulator assured that it will do everything possible to control the cryptocurrency space, and we see this even closer amid the constant warnings directed at DeFi projects , in which he highlights that these could fall under its jurisdiction.

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Source: Finbold, TheBlockCrypto

Version by Angel Di Matteo / DiarioBitcoin

Image by Unsplash