Chinese Millionaire Buys 27% of US Blockchain Company

The SEC is yet to comment on the acquisition.

Seven Stars Cloud Group, a Chinese cloud technology company founded and run by entertainment mogul Brian Wu, saw its stock rise by over 25% on Nasdaq after announcing its purchase of 27% of the stocks of Delaware Board of Trade Holdings last week, according to a report from Bitcoin.com.

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Delaware Board of Trade Holdings is an American company that develops trading systems for the financial industry. According to its website, it is the “first and only blockchain based Alternative Trading System fully licensed by the SEC”.

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According a Seven Stars Cloud press release, the deal’s purpose is to create a new network – the ‘Initial Exchange Offering Network’, or IEO. Seven Stars Cloud will use its blockchain-based product ‘NextGen X’, combine it with DBOT’s alternative trading system, and thus “differentiate itself from, other digital currency bsed ICO platforms”.

DBOT CEO John Wallace said: “We are thrilled to further partner and form a deeper business relationship with SSC as DBOT and its various business lines become key engines that power SSC’s Global Trading Platform Network for Initial Exchange Offerings.”

Seven Stars Cloud is owned by Bruno Wu, one of China’s wealthiest businessman. Nicknamed ‘Mr. Chinawood’, 51-year old Wu last year bought a majority share in a media company called YOU On Demand, formerly owned by professional wrestler Shane McMahon, according to the New York Post.

Wu said in a company press release last week: “In this case of Seven Stars Cloud, we are applying Blockchain and Artificial Intelligence to create a hybrid solution for supply chain finance, risk management and asset-backed digital securitization.  And these are only the first massive opportunities and markets we are targeting, with more plug and play opportunities to be announced in 2018.”

The purchase will make him the controlling shareholder of DBOT.

The Securities and Exchange Commission is yet to comment on the acquisition. The reaction of the regulator will be of interest given that it stopped a move by a Chinese firm to buy the Chicago Stock exchange earlier this year due to concerns about a lack of transparency.

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