Federal Reserve Indicts Deported Chinese Billionaire for Crypto Fraud

Meet the newest member of the gallery of crypto scammers: Ho Wan Kwok, aka Guo Wengui, aka Miles Guo, US Department of Justice on Wednesday arrested What investigators described as “a chaotic and complex scheme to lure hundreds of thousands of Kwok’s online followers to invest in various organizations and programs through false statements and representations.”

Kwok/Guo has a fascinating backstory. Born in China, he became a real estate entrepreneur and a billionaire. He left China in his 2014, sparking multiple controversies surrounding his interests and actions, and by 2017, he was residing in New York and becoming an acrimonious critic of the Chinese government, criticizing his issues and their It disseminated vivid theories about Beijing’s role in the matter.

His position seems to irritate Beijing: think tank Australian Institute for Strategic Policy was detected A state-sponsored misinformation campaign that portrays him as “corrupt and unreliable.”

Guo made new friends while living in the United States. Steve Bannon is a right-wing provocateur who was the CEO of Donald Trump’s first campaign as US President and later became a senior adviser to the White House. Guo said on social media that he was an avid TrumpLand advocate, becoming a member of Trump’s private club, Mar-a-Lago, and supporting businesses involving Bannon.

Bannon’s time 2020 arrested on fraud charges He was on Guo’s yacht.

Mr. Guo is also seeking investors in other companies, and those efforts are a source of ire from the Justice Department.

One of Guo’s businesses was called the Himalayan Exchange.Department of Justice situation The exchange offers “a purported stablecoin called the Himalayan Dollar and a trading coin called the Himalayan Coin,” and the Himalayan Exchange offers investors a loss if the value of the coin falls. I promised to make up for it.

Although these promises were clearly fictional, the Himalayan Exchange still managed to raise about $262 million from investors. Many were misled by misinformation on Guo’s social media accounts.

The Himalayan Exchange later made a labyrinthine deal that appeared to have been intended to water the pocketbooks of Guo and his associates.

That’s why the Justice Department on Wednesday indicted Guo and associates on numerous charges related to wire fraud, securities fraud, bank fraud, and money laundering charges. The Fed also revealed that it had seized approximately $634 million from bank accounts linked to Guo and his associates.

“Guo is a string of scammers who claim to have raised over $850 million by promising outsized profits to investors in purported investment opportunities in cryptocurrencies, technology and luxury goods. .” said Gurbir S. Grewal, Director of the Executive Division of the U.S. Securities and Exchange Commission.

“In reality, Guo used the hype and lure surrounding cryptocurrencies and other investments to victimize thousands of people and fund his and his family’s lavish lifestyles. ”

No one knows how Guo will defend himself. February filing for bankruptcy, claims less than $100,000 in assets and between $100 million and $500 million in liabilities. ®

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