According to several reports, Chinese billionaire Guo Wengui was arrested by the US Federal Bureau of Investigation (FBI) for his alleged involvement in a multi-million dollar crypto scam. Wengui is one of the Chinese billionaires who were forced to leave their country. The billionaire has a close relationship with former president Donald Trump.
ABC reports that Wengui is friends with Steve Bannon, a political strategist, Chief Strategist, and Senior Advisor to Trump. During his administration, Bannon was charged and convicted of fraud. Trump pardoned his former adviser for the allegations.
FBI Cracks Down on $1 Billion Crypto Fraud Scheme?
According to reports, Wengui was arrested and will be tried in federal court in New York. The FBI and the Securities and Exchange Commission (SEC) charged Wengui, under the name Ho Wan Kwok, and financier Kin Ming Je with wire, securities, and bank fraud.
Authorities in the country alleged that Ming Je and Wengui used their influence through social media and other platforms to catch victims of billion-dollar crypto scams. The suspects allegedly used the proceeds of the illegal scheme to acquire luxury items, such as Ferraris, a 50,000-square-foot mansion, yachts, and more.
The SEC believes that Guo Wengui started an illegal fraud scheme in 2020. At that time, the suspect launched an unregistered securities offering and a “fraud” based on a cryptocurrency called “H-Coin” allegedly backed by precious metals.
In its complaint, the SEC stated:
Beginning in or about April 2020, Guo conducted fraudulent securities offerings that collectively generated at least hundreds of millions of dollars from investors in the United States and around the world. Unbeknownst to these investors, Guo and his financial advisor, Je, misappropriated a large portion of the funds raised from certain Subject Offerings in order to support themselves and their family members.
Wengui also offered the victim a false opportunity to buy shares in GTV Media Group, a company founded by Chinese billionaire and former Trump adviser Bannon three years ago. US Attorney Damian Williams stated the following:
Kwok is accused of lining his pockets with the stolen money, including buying himself, and his close relatives, a 50,000 square foot mansion, a $3.5 million Ferrari and even two $36,000 beds, and financing a $37 million luxury yacht.