Legal Troubles of Guo Wengui in 2023
Exiled Chinese businessman Guo Wengui, also known as Miles Guo, has been found guilty of defrauding his supporters in a billion-dollar scam associated with his company, GTV Media Group. Thousands of Guo’s online followers were victimized so that Guo could live a life of excess. Today, Guo’s schemes have been put to an end, according to US Attorney Damian Williams.
Conviction and Charges of Miles Guo
Damian Williams highlighted that a unanimous jury delivered the verdict, resulting in charges of racketeering conspiracy, securities fraud, wire fraud, and money laundering, which could potentially lead Guo to decades of imprisonment. Guo’s legal troubles began in March 2023 when he was arrested in New York and has been in custody since then. Shortly after his arrest, a fire broke out in his opulent penthouse in Manhattan’s Upper East Side.
Evidence and Allegations Against Guo
- Prosecutors presented evidence during the trial showing how Guo had deceived investors out of nearly $1 billion to finance his extravagant lifestyle.
- The Securities and Exchange Commission (SEC) also brought charges against Guo for an alleged scheme related to a crypto venture called H-Coin.
- The venture raised $500 million from retail investors, with Guo falsely claiming it was backed by 20% gold reserves.
Steve Bannon’s Association with Guo
Guo has had a longstanding association with political strategist Steve Bannon, who briefly served in the Trump White House. Together, they announced an initiative in 2020 called the New Federal State of China, aiming to overthrow the Chinese government. Bannon faced legal consequences himself when he was arrested on Guo’s yacht in August 2020.
Bannon’s Legal Troubles
- Bannon was charged with conspiracy to commit wire fraud and money laundering in connection with a crowdfunding campaign for a border wall between the United States and Mexico.
- Although later pardoned by former President Trump, Bannon faced separate fraud charges from state-level prosecutors.
Scams on Huione Guarantee Platform
Huione Guarantee, an online marketplace operated by the Cambodian conglomerate Huione Group, has been implicated in facilitating online scams in Southeast Asia. The platform has processed transactions exceeding $11 billion, with a significant portion linked to money laundering and cyber scams, as per a recent research report by Elliptic.
Elliptic’s Findings and Investigations
- Using blockchain analytics, the Elliptic research team quantified the cryptocurrency transactions on the Huione Guarantee platform.
- The marketplace operates primarily in Chinese and involves various instant messaging app channels managed by separate merchants.
- Huione Pay has been involved in laundering over $150,000 in cryptocurrency stolen by the North Korean hacking group Lazarus.
Illegal Funds Received by Huione Pay
According to a Reuters report, the Phnom Penh-based company received illicit funds between June last year and February this year, revealed by blockchain data. The stolen cryptocurrency was linked to hacks of three crypto firms by Lazarus in June and July last year.
Hot Take: Stay Informed and Vigilant
Stay informed about the latest developments in the crypto world to protect yourself from potential scams and fraudulent schemes. It’s essential to be vigilant and conduct thorough research before engaging in any financial transactions or investments.
Sources:
– Elliptic Research Report
– Reuters Article
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