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. He also promised to provide compensation in case of losses personally.

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. It additionally charged Guo with misappropriating $43.5 million of funds from two other offerings for use in personal spending.

Guo allegedly obtained $850 million through those various schemes. The SEC said these activities violated the registration provisions of securities laws.

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. The regulator collected $454 million in fines and payments at that time.

Guo is a Chinese expat and billionaire

Guo was a former resident of China who fled to the U.S. in 2014 after learning of various impending charges against him. He asserts that those allegations are politically motivated and claims to be a whistleblower against the Chinese Communist Party.

Within the United States, Guo has ties to former U.S. President Donald Trump and his political circles. 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 was, at one point, the 73rd richest person in China.

The post SEC charges Trump-connected Chinese businessman Guo Wengui over ‘H-Coin’ appeared first on CryptoSlate.

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Filed under: Bitcoin - @ March 16, 2023 5:00 am