Three Media Companies to Pay $539M to Settle SEC Lawsuit

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The US Securities and Exchange Commission (SEC) has accused GTV Media Group, Saraca Media and Voice of Guo Media of an unregistered offering of shares and digital assets. The defendants agreed to pay more than $539 million to settle the claim.

According to the regulator, from April to June 2020, companies illegally floated GTV common shares and digital securities in the form of tokens called G-Coin or G-Dollar.

Defendants disseminated information about the asset offerings through GTV and Saraca websites and on social media.

According to the regulator, the companies raised a total of about $487 million from over 5,000 investors, including US residents. However, the company did not register both offers of securities.

A SEC spokesman said:

“Issuers seeking to gain access to the markets through a public offering of securities must provide investors with disclosures in accordance with federal laws. If they do not, the Commission will look for ways to protect the victims, including canceling the offer and refunds.”

Without acknowledging or denying the findings of the Commission, the firms agreed to pay compensation in the amount of more than $486 million and interest in the amount of about $18 million.