Crypto News / Cryptocurrency · September 20, 2021

SEC To Take Action Against Companies Owned By Chinese Billionaire

SEC is a registered and acclimated authority working in the US to propose new regulations for the crypto industry and overseeing various operations within this space to make sure that everything goes as smoothly as possible and there are no bad actors or culprits to disturb the harmony. It has recently targeted a Chinese billionaire known as Guo Wengui for proceeding with two unregistered securities offerings.

The Securities and Exchange Commission is hot on the trail of 3 companies owned by a Chinese billionaire for the unlawful acquisition of ICO and IPO whose combined proceedings are about $487 million. The Chinese businessman, also known as Miles Guo, has a bit of history with China as he is exiled from the country who currently lives in New York. The very reason is that Miles was involved in some controversial political matters, and due to his close ties with Donald Trump, he was exiled from China and made New York his ultimate residential spot.

Unregistered ICO and IPO

SEC has already issued a cease and desist order against three companies owned by Miles; the documents show that these companies agreed to pay a certain sum or settlement to the SEC within 14 days but failed to do so. The ICO collectively brought in $34 million from various investors for G-Dollars, the ultimate coin being introduced under the cloak of these unrecognized ICOs and IPOs by Mile’s companies.

A general claim regarding these coins was that these could be transferred or exchanged in place of gold or other fiat currencies and could also be used for the sake of purchasing goods. SEC claim that the investors of this G-Dollars were not filled in, such as how the platform would be developed for this digital asset. Without the proper registration of an ICO, no cryptocurrency or coin could go into circulation, and similarly, without a properly drafted and regulated IPO, no commodity could be sold on the stock market.

Both these events happened and Mile’s companies were behind all of this. The long story short is that the companies have decided to pay back what they owe to the SEC, and soon enough, this whole thing will be sorted out.