Per several reports, Chinese billionaire Guo Wengui was arrested by the U.S. Federal Bureau of Investigation (FBI) for his alleged participation in a multi-million dollar crypto fraud. Wengui is one of the many Chinese billionaires forced to leave their country. The billionaire had close ties with former president Donald Trump.
An ABC report claims that Wengui had a friendship with Steve Bannon, a political strategist, Chief Strategist, and Senior Counselor for Trump. During his administration, Bannon was charged and convicted of fraud. Trump granted his former advisor a pardon for the charges.
FBI Breaks Down $1 Billion Crypto Fraud Scheme?
According to a report, Wengui was arrested and will stand trial in a federal court in New York. The FBI and the Securities and Exchange Commission (SEC) accused Wengui, under the name Ho Wan Kwok, and his financier Kin Ming Je of wire, securities, and bank fraud.
Authorities in the country claim that Ming Je and Wengui used their influence via social media and other platforms to catch victims for their billion-dollar crypto fraud. The suspects allegedly used the proceeds of the illegal scheme to acquire luxury items, such as Ferraris, a 50,000-square-foot mansion, a yacht, and more.
The SEC believes that Guo Wengui began the illegal fraud scheme in 2020. At that time, the suspect launched an unregistered and “fraudulent securities offering” based on a cryptocurrency called “H-Coin” allegedly supported by precious metals.
In a complaint, the SEC stated:
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 in the United States and around the world. Unbeknownst to those investors, Guo and his financial adviser, Je, misappropriated a large portion of the funds raised from certain of the Subject Offerings in order to enrich themselves and their family members.
Wengui also illegally offered his victims a false opportunity to purchase a stake in the GTV Media Group, a company founded by the Chinese billionaire and the former Trump advisor Bannon three years ago. U.S. Attorney Damian Williams stated the following:
Kwok is charged with lining his pockets with the money he stole, including buying himself, and his close 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.
