Guo Wengui, a Chinese billionaire with ties to Donald Trump’s former senior adviser, has been found guilty of multiple charges including racketeering conspiracy and wire fraud. The exiled businessman, known as a vocal critic of the Chinese Communist Party (CCP), faces decades in prison over his billion-dollar cryptocurrency scheme.
Cryptocurrency Investors Fund Chinese Billionaire’s Lavish Lifestyle
As of March 2023, Guo Wengui was stopped by the United States Federal Bureau of Investigation (FBI) after being charged with securities fraud, wire fraud and bank fraud by the Securities and Exchange Commission (SEC).
The SEC accused the Chinese businessman, also known as Mile Guo and Ho Wan Kwok, of launching an illegal fraud in 2020 with the launch of a cryptocurrency called “H-Coin.” The U.S. regulator said Guo conducted a “fraudulent securities offering” that allowed him to raise hundreds of millions of dollars from investors around the world.
In addition, Guo was charged with inciting others to commit several crimes. frauds Over the years, the billionaire targeted retail investors through social media to mislead them with lies. Prosecutors have argued that the billionaire promised massive returns to those who invested in his media company, GTV Media Group Inc., founded by Chinese billionaire and former Trump adviser Steve Bannon.
However, he allegedly spent the cryptocurrency investors’ money on a lavish lifestyle and luxury goods, including vehicles, properties, and a yacht. As US attorney Damian Williams stated:
Kwok is accused of lining his pockets with the stolen money, including buying himself and his relatives a 50,000-square-foot mansion, a $3.5 million Ferrari and even two $36,000 mattresses, and financing a $37 million luxury yacht.
During the two-month trial in Manhattan federal court, prosecutor Ryan Finkel showed videos of the defendant touting his investments and displaying a life of excess. In his closing argument, Finkel called Guo a man “who spun devious lies to deceive his supporters into giving him money.”
According to Reuters, the prosecutor Underlines The Chinese billionaire made more than $1 billion from his cryptocurrency scam by assuring investors and online followers that they wouldn’t lose money. “They paid their money to participate in these investment opportunities,” Finkel said.
Bitcoin (BTC) is trading at $64,815 in the three-day chart. Source: BTCUSDT on TradingView
Guo found guilty in billion-dollar cryptocurrency scheme
Two weeks ago, defense attorney Sidhardha Kamaraju sent a letter to Judge Analisa Torres questioning the validity of the witnesses’ testimony. The letter claims The defense had reason to suspect that China’s ruling party was interfering because of Guo’s political position.
During the trial, Kamaraju denied all 12 counts against Guo. In its closing argument, the defense argued that the prosecutor had case “He was long on rhetoric but short on detail, long on words but short on evidence.”
The defense claimed that Guo’s display of wealth was part of the political movement and a criticism of the CCP. Kamaraju also said his client “didn’t care about money, he cared about the movement.”
The goal of making investors rich was also a way of spitting in the face of the CCP. It was trying to tell people that they could have a better life without the CCP. That they could have nice things.
However, the U.S. Attorney’s Office for the Southern District of New York issued a press release Tuesday revealing that “Guo’s plans were terminated” after the jury unanimously found the defendant guilty.
US Attorney's Office reveals jury's decision in Guo's trial. Source: US Attorney's Office
The Chinese businessman was found guilty on nine of 12 counts, including racketeering conspiracy and various charges of securities fraud, wire fraud and money laundering. Guo’s sentencing will take place in November and is expected to result in decades of imprisonment.
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