Cryptocurrency Fraudster Guo Wengui Convicted
Exiled Chinese billionaire Guo Wengui, known for his criticism of the Chinese Communist Party and his close ties with American conservatives, has been convicted of defrauding his online followers of hundreds of millions of dollars. Guo, who went by multiple aliases, including “Miles Kwok” and “Ho Wan Kwok,” amassed a substantial online following through his YouTube videos, where he criticized the Chinese government.
Federal prosecutors in Manhattan accused Guo of raising over $1 billion by guaranteeing his followers that they would not lose money if they invested in his various business and cryptocurrency schemes. According to prosecutors, Guo used the money to fund his lavish lifestyle, including purchasing a New Jersey mansion, a red Lamborghini, and a yacht.
Following a seven-week trial, Guo was convicted of nine out of 12 criminal counts, including racketeering conspiracy and wire fraud. He faces decades in prison.
Guo’s Schemes
Prosecutors said that Guo’s scheme, which lasted several years, involved lying to victims about their investments and promising them “outsized returns” if they provided money to his multiple entities. These entities included GTV Media, the Himalaya Farm Alliance, G|CLUBS, and the Himalaya Exchange.
During the trial, prosecutors played videos of Guo pitching investments, including several where he stood on a yacht deck. Prosecutors said that Guo laundered the money through multiple bank accounts and made expensive purchases, such as a 50,000 square foot New Jersey mansion, a custom Bugatti sports car for $4.4 million, a Ferrari worth $3.5 million, a $37 million luxury yacht, and a $62,000 television.
Guo also purchased furniture and decorative items, including Chinese and Persian rugs worth about $978,000.
Guo’s Past
Guo was once believed to be among the richest people in China. He left China in late 2014 and came to the U.S. seeking asylum, accusing Chinese officials of corruption.
Guo’s assets were seized by the governments of China and Hong Kong in 2017 during money laundering investigations. Guo was also an ally of Steve Bannon, a former adviser to President Donald Trump.
Guo’s conviction serves as a reminder of the importance of due diligence when it comes to investing, especially in the often-volatile world of cryptocurrencies. It also highlights the risks associated with investing in schemes promoted by individuals with questionable motives.
