Guo Wengui found guilty of nine charges, including using the cryptocurrency H-Coin to defraud billions of dollars.

U.S. prosecutors have convicted exiled Chinese businessman Guo Wengui of nine counts of fraud, potentially facing decades in prison. He is accused of using various methods such as club memberships, cryptocurrencies, and selling personal shares of his media company to extort followers to maintain a lavish lifestyle. Additionally, the U.S. Securities and Exchange Commission (SEC) has charged Guo Wengui with raising hundreds of millions of dollars through the cryptocurrency H-Coin, leading to harm for thousands of people.

Who is Guo Wengui?

According to a report by BBC, Guo Wengui is a real estate developer who was one of the wealthiest individuals in China before leaving the country in 2014. In 2017, he claimed to be persecuted by the Chinese Communist authorities and applied for political asylum in the United States.

Guo Wengui has used several aliases, including Miles Guo or Miles Kwok and "Brother Seven." In legal documents, his name is listed as Guo Haoyun.

In March 2023, Guo Wengui was arrested and charged by the U.S. Department of Justice for allegedly defrauding over $1 billion. Now, U.S. prosecutors have convicted Guo Wengui on nine counts of fraud and he may face decades in prison. He is accused of using various methods such as exploiting club memberships, cryptocurrency, and selling private shares of his media company to extort followers to maintain a lavish lifestyle.

Defrauding Hundreds of Millions of Dollars Through Cryptocurrency H-Coin

Guo Wengui is also accused of raising hundreds of millions of dollars from investors through a cryptocurrency asset security named "H-Coin," also known as Himalaya Coin or HCN, and related stablecoins.

He is accused of making significant false statements to potential H-Coin investors, including falsely claiming that H-Coin had a 20% gold reserve and that he would personally compensate any potential losses for investors. Additionally, he is accused of using "hunger marketing" tactics, claiming that the "Himalaya Exchange is the world's first truly meaningful cryptocurrency ecosystem," driving up the price of H-Coin rapidly.

He is also facing charges from the U.S. Securities and Exchange Commission SEC. Gurbir S. Grewal, Director of the SEC's Enforcement Division, stated, "We allege that Guo Wengui is a serial fraudster who raised over $850 million by promising investors outsized returns on so-called cryptocurrency, technology, and luxury goods investment opportunities. In reality, Guo lured thousands of victims with hype surrounding cryptocurrency and other investments to fund his and his family's extravagant lifestyle."