• Chinese billionaire Guo Wengui was arrested by the FBI for his alleged participation in a multi-million dollar crypto fraud.
• He had close ties with former President Donald Trump and political strategist Steve Bannon, who was convicted of fraud and later pardoned.
• The SEC accused Wengui and his financier Kin Ming Je of wire, securities, and bank fraud using proceeds from a billion-dollar crypto scheme.
Chinese Billionaire Arrested for Crypto Fraud
Several reports claim that Chinese billionaire Guo Wengui has been arrested by the U.S. Federal Bureau of Investigation (FBI) for allegedly participating in a multi-million dollar crypto fraud. Wengui is one of the many Chinese billionaires forced to leave their country due to close ties with former president Donald Trump’s political strategist Steve Bannon, who was charged and convicted of fraud before being granted a pardon by Trump.
$1 Billion Crypto Fraud Scheme
The FBI and Securities and Exchange Commission (SEC) accuse Wengui, under the name Ho Wan Kwok, and his financier Kin Ming Je of wire, securities, banking frauds involving funds raised from an unregistered cryptocurrency called “H-Coin” purportedly backed by precious metals. It is believed that they used the proceeds from this illegal scheme to acquire luxury items such as Ferraris, 50k square feet mansion, yachts etc. The SEC claims that this began in 2020 when the suspects launched the fraudulent securities offering based on H-Coin.
Charges Filed Against Guo Wengui
Guo Wengui will be tried in federal court in New York for multiple charges related to the billion dollar crypto fraud including wire fraud, securities fraud, bank fraud etc.. According to SEC’s complaint: “Since in or about April 2020 Guo has conducted fraudulent securities offerings that have collectively raised at least hundreds of millions of dollars from investors.”
Suspected Misappropriation Of Funds
The authorities suspect that Guo Wengui alongside his financial adviser misappropriated funds raised via these fraudulent securities offerings without informing investors which could lead to additional charges against him if proven true during trial proceedings.
Conclusion
Thus it is clear that Chinese billionaire Guo Wengui has been accused by US authorities over multi million dollar crypto scam using proceeds from an unregistered cryptocurrency known as “H-Coin”. He will be facing criminal charges including wire & securities & banking frauds with suspected misappropriation of funds if proven guilty during trial proceedings at New York federal court .