Guo Wengui — also known as Miles Guo — has been charged over a fraudulent cryptocurrency scheme, according to a statement from the SEC on March 15.
SEC files charges against Guo
The U.S. Securities and Economic Commission (SEC) said that Guo ran a crypto offering for an asset called “H-Coin” (aka “Himalaya Coin” or “HCN”) and a related stablecoin.
The SEC alleges that beginning in October 2021 or earlier, Guo misrepresented H-Coin to potential investors by falsely stating that 20% of the asset’s value was backed by gold. Guo also promised compensation for any losses.
That crypto scheme was just one illicit activity named in the SEC’s charges today, as the regulator also charged Guo with misusing assets elsewhere. The SEC charged Guo and his financial advisor William Je with diverting $100 million of investor funds in relation to stock in Guo’s GTV Media Group, Inc. Guo was also charged with misappropriating $43.5million of funds from two other offerings to be used for personal spending.
Guo is alleged to have obtained $850 millions through these schemes. These activities are alleged to have violated securities laws’ registration provisions.
The SEC previously charged Guo’s GTV Media Group and other parties over another unregistered crypto security asset called “G-Coins” or “G-Dollars” in 2021. At that time, the regulator was fined and paid $454 million.
Guo is a Chinese expat who has become a billionaire.
Guo was an ex-resident of China and fled to the U.S. after learning about several charges against him. Guo claims that these allegations are politically motivated. He also claims to be a whistleblower for the Chinese Communist Party.
Guo is a former U.S. President Donald Trump’s friend and has connections to his political circle. He is a member of Trump’s Mar-a-Lago resort in Florida and launched GTV Media Group in association with Trump party member Steve Bannon.
Guo is a billionaire, and at one time was the 73rd most wealthy person in China.