SEC Fined Media Firms $549M for Illegally Conducting Crypto Offerings

Updated: Sep 14, 2021

The Securities and Exchange Commission (SEC) announced it has charged several media outlets, including GTV Media Group Inc. and Saraca Media Group Inc.

SEC Fined Media Firms $549 Million for Illegally Conducting Crypto Offerings
SEC | Image: Coindesk

The media companies were charged after they have illegally collected more than $400 million in security and digital assets offerings.

According to the report, respondents pushed many individuals to fund GTV stock offerings. In addition, GTV and Saraca also sold 'G-dollars.' Moreover, reports stressed that the respondents have agreed to pay more than $539 million to settle the SEC's action.

The reports stated that respondents shared news about 2 offerings on their websites and different social media platforms.

Also, SEC noted that the websites accumulated around $500 million from more than 5,000 investors. However, the companies didn't require registration or user verification.

Even more, reports added that regulators should have given investors with disclosures ordered to federal securities laws. But since firms have failed to do so, the regulator will undo the offering to return back collected funds to investors.

What is more, the companies have agreed to pay disgorgement of $434 million and $16 million in prejudgment interest. In addition to this, they will have to pay a civil penalty of $15 million.

Note that respondents also stated that they will not engage in any offerings of cryptocurrency assets to support the commission in creating a distribution or payment plan.

SEC ordered the companies to publish its notice on their websites to provide more exposure to their investors and participants in digital assets offerings.