Chinese billionaire's $1 billion fraud charges, Kwon's $11 million bet, Zhu Su and Islam : Asia Express
Our weekly East Asian news roundup features the most important developments in the industry.
Chinese billionaire arrested in US for $1 billion financial fraudAccording to a US Department of Justice (DOJ) announcement on March 15, Chinese billionaire Ho Wan Kwok (aka Miles Guo and more commonly known as Guo Wengui) has been arrested on a total of twelve counts of charge, including wire fraud, securities fraud, bank fraud and money laundering. Among many things, the DOJ alleges that Kwok/Guo "fraudulently obtained" more than $262 million from victims through the Himalayan Exchange cryptocurrency platform.
The Himalaya Exchange included assets such as the Himalaya Dollar (HDO), a purported stablecoin, and the Himalaya Coin (HCN), a purported trading coin. According to the indictment, Guo told investors that HCN was 20% backed by gold and that he would personally compensate investors for "100%" of trading losses.
"If someone loses money, I can say that I will compensate 100%. I give you 100%. Whoever loses money, I will bear it."
Guo launched HCN and HDO coins in an initial coin offering (ICO) around November 1, 2021, when HCN was trading at around $0.10 each. Two weeks later, the Himalaya Exchange website said each HCN was worth 27 HDO, or $27, and had a total market capitalization of $27 billion.
Between September 2022 and March 2023, US authorities subsequently seized $634 million of Guo's alleged fraud proceeds, including $278 million from bank accounts held by Himalaya Exchange and related entities. At the time of publication, Himalaya Exchange's social accounts and website appear to still be online and active.
In another incident, Guo allegedly sold $452 million worth of common stock in a bid initial public offering (IPO) to more than 5,500 investors for shares of GTV Media Group. The DOJ alleges that in both incidents, the contractor misappropriated a substantial portion of investors' funds and will seek forfeiture of seized assets. In 2021, the United States Securities and Exchange Commission took enforcement action against three of his companies with ICOs and unregistered IPOs. At the time, the companies were up to $486.6 million in fines, prejudgment interest of $17.6 million, and a civil penalty of $35 million combined.
The billionaire is said to be a close friend of former White House chief strategist Steve Bannon. Rising to fame through real estate and construction in China, he fled the country in 2014 after receiving reports of his impending arrest on charges of bribery, kidnapping, money laundering, fraud and rape. He has since lived in self-imposed exile in the United States, sought asylum, and is an outspoken critic of the Chinese Communist Party (CCP). However, several documents used by Guo to criticize the CCP were allegedly forged. An Interpol Red Notice for his arrest is said to have been active since 2017.
To defeat communism, buy my coinFor the Chinese billionaire, “bringing down the CCP” is a goal that aligns perfectly with promoting crypto. In 2020, Guo founded the New Federal State of China (NFSC) political movement with the stated aim of overthrowing the CCP alongside the non-profit organization Himalaya Supervisory, which is linked to the crypto exchange. aforementioned currency.
Besides educating viewers about the evils of communism, Guo also used the official NFSC and Himalaya Supervisory mark to his followers about the alleged benefits of his HDO and HCN coins:
"Himalaya Coin will crush Bitcoin in a snap if a certain country grants Himalaya Reserve or Himalaya Coin visual banking license and virtual banking exchange."
In another "lecture" dated shortly before his arrest, Guo told viewers that the "United States" and communist China are vying for power to set blockchain standards that will govern all di . ..
Our weekly East Asian news roundup features the most important developments in the industry.
Chinese billionaire arrested in US for $1 billion financial fraudAccording to a US Department of Justice (DOJ) announcement on March 15, Chinese billionaire Ho Wan Kwok (aka Miles Guo and more commonly known as Guo Wengui) has been arrested on a total of twelve counts of charge, including wire fraud, securities fraud, bank fraud and money laundering. Among many things, the DOJ alleges that Kwok/Guo "fraudulently obtained" more than $262 million from victims through the Himalayan Exchange cryptocurrency platform.
The Himalaya Exchange included assets such as the Himalaya Dollar (HDO), a purported stablecoin, and the Himalaya Coin (HCN), a purported trading coin. According to the indictment, Guo told investors that HCN was 20% backed by gold and that he would personally compensate investors for "100%" of trading losses.
"If someone loses money, I can say that I will compensate 100%. I give you 100%. Whoever loses money, I will bear it."
Guo launched HCN and HDO coins in an initial coin offering (ICO) around November 1, 2021, when HCN was trading at around $0.10 each. Two weeks later, the Himalaya Exchange website said each HCN was worth 27 HDO, or $27, and had a total market capitalization of $27 billion.
Between September 2022 and March 2023, US authorities subsequently seized $634 million of Guo's alleged fraud proceeds, including $278 million from bank accounts held by Himalaya Exchange and related entities. At the time of publication, Himalaya Exchange's social accounts and website appear to still be online and active.
In another incident, Guo allegedly sold $452 million worth of common stock in a bid initial public offering (IPO) to more than 5,500 investors for shares of GTV Media Group. The DOJ alleges that in both incidents, the contractor misappropriated a substantial portion of investors' funds and will seek forfeiture of seized assets. In 2021, the United States Securities and Exchange Commission took enforcement action against three of his companies with ICOs and unregistered IPOs. At the time, the companies were up to $486.6 million in fines, prejudgment interest of $17.6 million, and a civil penalty of $35 million combined.
The billionaire is said to be a close friend of former White House chief strategist Steve Bannon. Rising to fame through real estate and construction in China, he fled the country in 2014 after receiving reports of his impending arrest on charges of bribery, kidnapping, money laundering, fraud and rape. He has since lived in self-imposed exile in the United States, sought asylum, and is an outspoken critic of the Chinese Communist Party (CCP). However, several documents used by Guo to criticize the CCP were allegedly forged. An Interpol Red Notice for his arrest is said to have been active since 2017.
To defeat communism, buy my coinFor the Chinese billionaire, “bringing down the CCP” is a goal that aligns perfectly with promoting crypto. In 2020, Guo founded the New Federal State of China (NFSC) political movement with the stated aim of overthrowing the CCP alongside the non-profit organization Himalaya Supervisory, which is linked to the crypto exchange. aforementioned currency.
Besides educating viewers about the evils of communism, Guo also used the official NFSC and Himalaya Supervisory mark to his followers about the alleged benefits of his HDO and HCN coins:
"Himalaya Coin will crush Bitcoin in a snap if a certain country grants Himalaya Reserve or Himalaya Coin visual banking license and virtual banking exchange."
In another "lecture" dated shortly before his arrest, Guo told viewers that the "United States" and communist China are vying for power to set blockchain standards that will govern all di . ..
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