Guo Wengui, an exiled Chinese industrialist, has been convicted of defrauding his supporters in a billion-dollar scam linked to his company, GTV Media Group.
“Thousands of his online followers were victimized to enable Guo to live a life of excess.” “Today, Guo’s schemes have been terminated,” stated US Attorney Damian Williams.
He further stated that the verdict was rendered unanimously, resulting in securities fraud, wire fraud, money laundering, and racketeering conspiracy charges. These charges have the potential to result in decades of imprisonment for Guo.
Guo Wengui’s Legal Issues Commenced in 2023
Guo’s legal difficulties commenced in March 2023 when he was apprehended in New York. He has been in custody ever since.
It is important to note that his ostentatious penthouse, situated on Manhattan’s Upper East Side, was consumed by fire shortly after his arrest.
During the trial, prosecutors presented evidence that revealed Guo had defrauded investors of nearly $1 billion to fund his extravagant lifestyle.
Furthermore, the Securities and Exchange Commission (SEC) filed charges against Guo in a distinct case for an alleged scheme involving a crypto venture known as H-Coin.
Guo falsely asserted that 20% of gold reserves supported the venture even though it purportedly raised $500 million from retail investors.
Steve Bannon, a political strategist who briefly served in the Trump White House, has maintained a longstanding relationship with Guo.
In 2020, they jointly announced an initiative known as the New Federal State of China, which was designed to overthrow the Chinese government.
In August 2020, Bannon faced legal repercussions following his arrest on Guo’s yacht.
In connection with a crowdfunding campaign for a border wall between the United States and Mexico, he was charged with conspiracy to commit wire fraud and money laundering.
Despite being pardoned by former President Trump, Bannon was ultimately charged with distinct fraud by state-level prosecutors.
Scam operators prosper on the Huione Guarantee
An online marketplace administered by the Cambodian conglomerate Huione Group, Huione Guarantee, has been implicated in the facilitation of online scams in Southeast Asia.
According to a recent research report by Elliptic, the platform has facilitated transactions totaling more than $11 billion, with a substantial portion of these funds associated with money laundering and cyber frauds.
The Elliptic research team was able to quantify the cryptocurrency transactions on the Huione Guarantee using blockchain analytics.
The marketplace is predominantly operated in Chinese and comprises many instant messaging app channels, each overseen by a distinct merchant.
Additionally, Huione Pay has been accused of laundering more than $150,000 in cryptocurrency that was seized by the notorious North Korean hacking group Lazarus.
According to a report published by Reuters on Monday, the company based in Phnom Penh received the illicit funds between June of last year and February of this year, as indicated by blockchain data.
The stolen cryptocurrency was associated with the breaches of three crypto firms that Lazarus conducted in June and July last year.