The SEC Accuses Miles Guo of Fraud
• The Securities and Exchange Commission (SEC) has charged exiled Chinese business tycoon Miles Guo with fraud related to crypto and other assets.
• The charges from the SEC relate to the sale of “unregistered and fraudulent offerings,” which raised more than $850 million for Guo, including a crypto scam.
• The money was allegedly used to fund Guo and his family’s luxury lifestyle, including purchasing and renovating a mansion in New Jersey and buying a Ferrari for his son.
Background Information
Miles Guo, also known as Guo Wengui or Miles Kwok, is a New York-based businessman closely associated with Donald Trump’s former advisor Steve Bannon. He has built up an online presence together with Bannon criticizing the Chinese Communist Party and its leadership.
Charges Filed by the SEC
The SEC has filed charges against Miles Guo for selling unregistered and fraudulent offerings that have raised more than $850 million, $500 million of which came from a crypto scam. Charges also include false promises made to investors in H-Coin, Himalaya Coin or HCN, where he promised that it is 20% backed by gold and that he would compensate investors for any losses in the coin.
Misappropriation of Funds
The SEC also said that funds were misappropriated by both Miles Guo and his financial advisor William Je to personally enrich themselves and their families. This includes diverting investor funds into a hedge fund owned by his son as well as spending millions on lavish lifestyles such as buying a mansion in New Jersey and buying a Ferrari for his son.
Conclusion
Gurbir S. Grewal from the SEC’s Division of Enforcement commented on this case saying that “We allege that Guo was a serial fraudster, who raised more than $850 million by promising investors outsized returns on purported crypto, technology and luxury good investment opportunities.”