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SEC Accuses Chinese Businessman With Ties To Donald Trump Advisor Of Orchestrating $500M Crypto Fraud – What’s Going On?


SEC Accuses Chinese Businessman With Ties To Donald Trump Advisor Of Orchestrating $500M Crypto Fraud – What’s Going On?

Miles Guo. Source: Video/YouTube screenshot

The Securities and Exchange Commission (SEC) has charged exiled Chinese business magnate Miles Guo with fraud related to crypto and other assets.

The charges brought by the SEC relate to the sale of so-called “unregistered and fraudulent offerings,” which raised more than $850 million for Guo, according to a Wednesday press release.

Also included as part of the fraud charges were charges related to the sale of crypto-assets called H-Coin, Himalaya Coin, or HCN, and a related stablecoin. The SEC also said that Guo made false promises to H-Coin investors, telling them that the coin was 20% gold-backed and that he would compensate investors for any losses from the coin.

Associated with Steve Bannon

Miles Guo, also known by his Chinese name Guo Wengui and sometimes as Miles Kwok, is a New York-based businessman with close ties to former Donald Trump adviser Steve Bannon. The two have built a substantial online presence together and often appear in online videos criticizing the Chinese Communist Party and its leaders.

Guo was charged alone for the crypto-related fraud, and along with his financial adviser William Je for the other charges.

Used to fund luxury lifestyle

Guo and Je “diverted much of the funds raised from investors to enrich themselves and their family members,” the SEC said.

Part of that came from a private placement of common stock in GTV Media Group, Inc., where $100 million of investor funds were diverted to a hedge fund that was supposed to be for the “sole benefit of a company owned by to the son of Guo”.

The agency said the money was used to fund Guo and his family’s luxurious lifestyle. This included $40 million to buy and renovate a New Jersey mansion and $3.5 million for a Ferrari for his son.

“We allege that Guo was a serial fraudster, who raised over $850 million by promising investors outsized returns on alleged crypto, technology and luxury investment opportunities,” Gurbir S said. Grewal, director of the SEC’s enforcement division, in a comment. .

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.