The Securities and Exchange Commission (SEC) has charged exiled Chinese business tycoon Miles Guo with fraud related to crypto and other assets.
The SEC’s charges relate to the sale of what it referred to as “unregistered and fraudulent offerings” that netted more than $850 million for Guo, according to a Press release From Wednesday
There were also charges related to the sale of a cryptoset referred to as H-Coin, Himalaya Coin or HCN and a related stablecoin as part of the fraud charges. The SEC also said that Guo made false promises to investors in H-Coin, telling them that the coin was 20% backed by gold and that he would compensate investors for any losses in the coin.
Connected with Steve Bannon
Miles Guo, also known by his Chinese name Guo Wengui and sometimes Miles Kwok, is a New York-based businessman closely related to Steve Bannon, a former advisor to Donald Trump. The two have built up a substantial online presence together, and often appear in online videos where they criticize the Chinese Communist Party and its leadership.
Guo was indicted alone for crypto-related fraud, and in conjunction with his financial advisor, William J., on other charges.
Used to fund luxury lifestyle
The SEC said that Guo and Jie “misappropriated a substantial portion of the funds raised from investors to enrich themselves and their family members.”
Part of GTV Media Group, Inc. was from a private placement of common stock, where $100 million of investor funds were diverted to a hedge fund, said to be “for the sole benefit of a company owned by Guo’s son”.
The agency said the money was used to fund a luxury lifestyle for Guo and his family. This included $40 million for the purchase and renovation of a New Jersey mansion and $3.5 million for a Ferrari for his son.
SEC’s Enforcement Division Director Gurbir S. “It is our allegation that Guo was a serial fraudster who raised over $850 million from investors by promising high returns on purported crypto, technology and luxury good investment opportunities,” Grewal said in a comment. ,