FBI Arrests Former Trump Adviser’s Partner Over $1 Billion Crypto Fraud
Photo by: Mika Baumeister – Unsplash
According to multiple 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 many Chinese billionaires forced to leave their country. The billionaire had close ties to former President Donald Trump.
An ABC report claims Wengui had a friendship with Steve Bannon, a political strategist, chief strategist and senior adviser to Trump. During his administration, Bannon was charged and convicted of fraud. Trump pardoned his former adviser over the charges.
FBI Cracks Down $1 Billion Crypto Fraud Scheme?
According to a report, Wengui was arrested and will stand trial in a federal court in New York. The FBI and the Securities and Exchange Commission (SEC) charged Wengui, under the name Ho Wan Kwok, and his financier Kin Ming Je with wire, securities and bank fraud.
Authorities in the country allege that Ming Je and Wengui used their influence via social media and other platforms to ensnare victims of their billion-dollar crypto scam. The suspects allegedly used the proceeds from the illegal scheme to acquire luxury items, such as Ferraris, a 50,000-square-foot mansion, a yacht and more.
The SEC believes that Guo Wengui started the illegal fraud scheme in 2020. At that time, the suspect launched an unregistered and “fraudulent securities offering” based on a cryptocurrency called “H-Coin” that is allegedly backed by precious metals.
In a complaint, the SEC stated:
Since in or around April 2020, Guo has conducted fraudulent securities offerings that have collectively raised 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, misused a large portion of the funds raised from some of the subject offerings to enrich themselves and their family members.
Wengui also illegally offered his victims a fake opportunity to buy a stake in GTV Media Group, a company founded by Chinese billionaire and former Trump adviser Bannon three years ago. United States Attorney Damian Williams stated the following:
Kwok is accused of lining his pockets with the money he stole, including buying himself and his close relatives a 50,000-square-foot mansion, a $3.5 million Ferrari and even two $36,000 mattresses, and to finance a $37 million luxury yacht.
