Cryptocurrency money laundering of 67 million euros, senior executives of anti-communist media "Epoch Times" arrested on the eve of 64

The Epoch Times, a media company known for its right-wing stance, has recently become the focus of public opinion as its CFO Guan Weidong, also known as Bill Guan, was arrested on suspicion of money laundering and bank fraud. Interestingly, he was arrested on June 2nd U.S. time, with news breaking on June 3rd (source), which coincided with a sensitive date on June 4th in Asian time.

Senior Executives of Anti-Communist Media "Epoch Times" Accused of Money Laundering

The U.S. government has charged Guan Weidong with one count of money laundering and two counts of bank fraud, alleging that he laundered at least $67 million through company accounts. The Department of Justice stated that this money led to a nearly 400% increase in Epoch Times' revenue within a year. Guan Weidong was arrested on Monday and pleaded not guilty to these charges in court.

Money Laundering Through Cryptocurrency Over Four Years

Prosecutors allege that from 2020 to 2024, Guan Weidong operated a "massive international scheme," purchasing prepaid debit cards at a discounted price with cryptocurrency and depositing the funds from these cards into personal and company accounts, some of which originated from fraudulent unemployment insurance benefits.

U.S. Government Emphasizes Enforcement Determination

The Southern District of New York Federal Prosecutor's Office stated that these charges demonstrate the government's commitment to combating money laundering and protecting the integrity of the financial system. The 61-year-old Guan Weidong is currently detained, facing a $3 million bail, including a $250,000 bond.

Response from Epoch Times

Epoch Times stated in a release that the company has always been guided by integrity and will fully cooperate with the investigation of Guan Weidong. Currently, Guan Weidong has been suspended from his duties pending the investigation results. The Department of Justice emphasized that these charges are unrelated to Epoch Times' journalistic activities and did not mention the names of other employees.

Background of the Media Company

Epoch Times is affiliated with the banned Chinese spiritual group Falun Gong, which used to primarily criticize the Chinese Communist Party. In recent years, the media has become a significant supporter of the U.S. right-wing, particularly in support of Trump. It has also become a major disseminator of right-wing conspiracy theories, especially on social media platforms like Facebook.

Unusual Financial Growth of the Company

According to federal tax documents, Epoch Times' revenue increased from $15 million in 2019 to $71 million in 2020, a 373% growth. In 2021, its revenue surged to $121 million. Guan Weidong and company representatives attributed this growth to an increase in paid subscriptions and donations from supporters.

Involved Parties Claim Income Comes from Donations

Prosecutors stated that when banks and cryptocurrency exchanges queried numerous suspicious transactions in Epoch Times' accounts, Guan Weidong denied any wrongdoing. He even told the banks that these deposits were from "increased donations from supporters." Additionally, he deposited $16.7 million into a personal account without reporting it on tax filings.

Political Influence of Epoch Times

Epoch Times' influence in U.S. politics is growing, especially within the right-wing camp. The company invested heavily in 2024 election coverage and ran numerous ads nationwide. Republican senators from Wisconsin and South Carolina have publicly praised the newspaper.