Main navigation

SEC Charged Media Firms $549 Million for Illegal Stablecoins and Security Offerings

News
Mon, 09/13/2021 - 15:11
article image
Arman Shirinyan
Media companies illegaly collected more than $400 million after security and digital assets offerings
SEC Charged Media Firms $549 Million for Illegal Stablecoins and Security Offerings
Cover image via stock.adobe.com
Read U.TODAY on
Google News

The Securities and Exchange Commission has charged various media outlets, like GTV Media Group Inc. and Saraca Media Group Inc. The media companies were charged with the illegal unregistered offering of securities and digital assets. The companies have agreed to pay the settlement. 

According to the SEC's report, respondents incentivized numerous individuals to invest in GTV stock offerings. In addition to security offerings, GTV and Saraca were also selling so-called G-dollars. Respondents shared information about two offerings on their websites and various social media platforms, including YouTube and Twitter. The websites raised approximately $500 million from more than 5,000 individuals, including U.S. investors. Neither offerings have required registration or user verification.

Related
Litecoin Plunges as Walmart Press Release Ends Ups Being Fake

According to the report, security issuers should have provided investors with disclosures regulated to federal securities laws. Since companies have failed to do so, the commissioner will unwind the offering in order to return collected funds to investors.

Companies have neither admitted nor denied the SEC's findings but, at the same time have agreed to pay a disgorgement of $434 million, plus $16 million in prejudgment interest. After the refund, companies will have to pay a civil penalty of $15 million.

Respondents have also stated that they will not participate in any offerings of digital or cryptocurrency assets to assist the commission in creating a distribution or refund plan. Companies have also agreed to publish the SEC's notice on their websites in order to provide more disclosure to their investors and participants in digital assets offerings.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.