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

admin March 16, 2023

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Guo Wengui ⁠— also known as Miles Guo⁠— has been charged with a fraudulent cryptocurrency scheme, according to an SEC statement. March 15th.

SEC Indicts Guo

The U.S. Securities and Economic Commission (SEC) said Mr. Guo made a cryptocurrency offering of an asset and related stablecoin called “H-Coin” (aka “Himalayan Coin” or “HCN”).

The SEC alleges that in October 2021 or earlier, Guo misrepresented to potential investors that 20% of H-Coin’s value was backed by gold. He also personally promised to provide compensation in the event of loss.

This cryptocurrency scheme is just one of the illegal activities named in today’s SEC complaint, in which regulators also accused Guo of misusing assets elsewhere. The SEC has charged Guo and his financial advisor, William Je, with misappropriating his $100 million investment funds in connection with Guo’s stake in his GTV Media Group, Inc. Additionally, Guo has been charged with diverting his $43.5 million from two of his other offerings for personal spending.

Guo is said to have made $850 million through these various schemes. The SEC said these activities violated the registration provisions of the Securities Act.

The SEC previously charged Guo’s GTV Media Group and other parties for another unregistered crypto security asset dubbed “G-Coins” or “G-Dollars” in 2021. Regulators collected $454 million in fines and payments at the time.

Guo is a foreigner in China and a billionaire

Guo is a former resident of China who fled to the United States in 2014 after learning of various impending charges against him. He claims these allegations were politically motivated and claims he is a whistleblower against the Chinese Communist Party.

Within the United States, Guo has ties to former US President Donald Trump and his political circles. He is a member of Trump’s Mar-a-Lago resort in Florida and co-founded his GTV media group with Trumpist Steve Bannon.

Guo is a billionaire and at one point was China’s 73rd richest person.