The Securities and Exchange Commission (SEC) has charged exiled Chinese business magnate Miles Guo with fraud related to cryptocurrency and other assets.
According to a Wednesday press release, the SEC’s charges stem from the sale of what it called “unregistered and fraudulent offerings” that raised more than $850 million for Guo, $500 million of which allegedly came from a cryptocurrency scam .
Also part of the fraud allegations were allegations related to the sale of a crypto-asset called H-Coin, Himalaya Coin, or HCN, and an associated stablecoin.
The SEC also said Guo made false promises to investors in H-Coin, telling them the coin was 20% backed by gold and that he would compensate investors for any coin losses.
Related to Steve Bannon
Miles Guo, also known by his Chinese name Guo Wengui and sometimes as Miles Kwok, is a New York businessman closely associated with former Donald Trump adviser Steve Bannon.
Together, they have built a significant online presence and often appear in online videos criticizing the Chinese Communist Party and its leadership.
Guo was indicted separately on cryptocurrency-related fraud and along with his financial adviser, William Jae, on other charges.
Used to finance a luxurious lifestyle
Guo and Jae “misappropriated a significant portion of the funds raised from investors to enrich themselves and members of their families,” the SEC said.
Part of that came from a private placement of GTV Media Group, Inc.’s common stock, where $100 million of investor funds were diverted to a hedge fund said to be for the “exclusive benefit of a company owned by Guo’s son.”
The agency said the money was used for the lavish lifestyle of Guo’s foundation and his family.
This included a $40 million purchase and renovation of a mansion in New Jersey and a $3.5 million Ferrari for his son.
“We allege that Guo was a serial fraudster who collected more than $850 million by promising investors huge profits from purported cryptocurrency, technology and luxury investments,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said in a statement.
