SEC Settles With Media Companies for $539M Over Alleged Illegal Digital-Asset, Stock Offerings
The SEC estimated thousands of investors purchased GTV stock and digital assets dubbed G-Coins or G-Dollars.
Sep 13, 2021 at 3:07 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/YAT2KOWCTVFVBGTJN2GBNUOZNE.jpg)
Tanzeel Akhtar is a reporter based in London,UK.
The U.S. Securities and Exchange Commission (SEC) agreed to a $539 million settlement with GTV Media, parent company Saraca Media and Voice of Guo Media after charging them with conducting illegal digital-asset and stock offerings.
- The SEC said the three companies have been charged for an illegal, unregistered offering of GTV common stock as well as digital securities called G-Coins or G-Dollars.
- New York-based GTV Media, Saraca Media and Phoenix-based Voice of Guo Media solicited thousands of individuals to invest in the GTV stock offering in April-June 2020, the SEC said.
- “Thousands of investors purchased GTV stock, G-Coins and G-Dollars based on the respondents’ solicitation of the general public with limited disclosures,” said Richard Best, director of the SEC’s New York regional office.
- The companies neither admit nor deny the findings, the SEC said. They also agreed to a cease-and-desist order.
- New York Attorney General Letitia James also secured an agreement with GTV Media and Saraca Media Group in which the two firms agreed to pay $479.9 million to settle claims they failed to register in New York as securities dealers and/or commodities broker-dealers.
- GTV Media and Saraca will receive credit towards the $479.9 million for payments they make in their settlement with the SEC, with the New York settlement money being placed in a fund to compensate harmed investors.
UPDATE (Sept. 13, 19:38 UTC): Updated with information about the settlement with the New York Attorney General in the fifth and sixth bullet points.
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