Regulation

SEC charges Trump-connected Chinese businessman Guo Wengui over ‘H-Coin’

Guo Wengui ⁠— often known as Miles Guo ⁠— has been charged over a fraudulent cryptocurrency scheme, in response to an announcement from the SEC on March 15.

SEC recordsdata prices in opposition to Guo

The U.S. Securities and Financial Fee (SEC) mentioned that Guo ran a crypto providing for an asset referred to as “H-Coin” (aka “Himalaya Coin” or “HCN”) and a associated stablecoin.

The SEC alleges that starting in October 2021 or earlier, Guo misrepresented H-Coin to potential buyers by falsely stating that 20% of the asset’s worth was backed by gold. He additionally promised to offer compensation in case of losses personally.

That crypto scheme was only one illicit exercise named within the SEC’s prices right this moment, because the regulator additionally charged Guo with misusing property elsewhere. The SEC charged Guo and his monetary advisor William Je with diverting $100 million of investor funds in relation to inventory in Guo’s GTV Media Group, Inc. It moreover charged Guo with misappropriating $43.5 million of funds from two different choices to be used in private spending.

Guo allegedly obtained $850 million by these numerous schemes. The SEC mentioned these actions violated the registration provisions of securities legal guidelines.

The SEC beforehand charged Guo’s GTV Media Group and different events over one other unregistered crypto safety asset referred to as “G-Cash” or “G-{Dollars}” in 2021. The regulator collected $454 million in fines and funds at the moment.

Guo is a Chinese language expat and billionaire

Guo was a former resident of China who fled to the U.S. in 2014 after studying of assorted impending prices in opposition to him. He asserts that these allegations are politically motivated and claims to be a whistleblower in opposition to the Chinese language Communist Social gathering.

Inside the US, Guo has ties to former U.S. President Donald Trump and his political circles. He’s a member of Trump’s Mar-a-Lago resort in Florida and launched GTV Media Group in affiliation with Trump social gathering member Steve Bannon.

Guo is a billionaire and was, at one level, the 73rd richest particular person in China.

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