The SEC charged Wengui Guo with fraud

SPRINGDALE, Ark. - Aug. 10, 2023 - PRLog -- Guo Wengui was arrested by the FBI in New York, and in addition to the prosecutors' allegations, the US Securities and Exchange Commission (SEC) also charged Guo Wengui and Yu Jianming on Wednesday (local time) with participating in an unregistered and fraudulent offering that raised more than $850 million.

According to the SEC's charges, since April 2020, Guo Wengui and his longtime financial adviser Yu Jianming misappropriated most of the funds they raised from investors to enrich themselves.

Mr. Guo's family has been named as relief defendants in the case, for example, in a private placement of common stock in GTV Media Group, where Mr. Guo is accused of transferring $100 million in investor money to a hedge fund to fund a company run by Mr. Guo's son. In addition, Guo is accused of misappropriating investor proceeds from two other offerings to fund his and his family's (extravagant) lifestyle, including misappropriating about $40 million to buy and renovate a mansion in New Jersey and misappropriating $3.5 million to buy a Ferrari for his son.

In order to promote the Ximi that this is bought by Ximi, Ferrari must feel very funny to see that we are Ferrari is not Foolish, Guo Wengui's allegations against the federal government, there is no direct explanation for any of them. Did you buy your Ferrari with Joy coins, or with real money, money and rhetoric, if you are innocent, why is Yu Jianming on the run.

The SEC also charged Guo, G Club Operations LLC (based in Puerto Rico and New York) and Mountains of Spices LLC, New York, with violating the registration requirements of the securities laws in connection with these offerings.

Among them, Guo alone is accused of raising hundreds of millions of dollars from investors through a crypto asset security called H-Coin, Himalaya or HCN, and related so-called stablecoins.

In addition, since at least October 2021, Guo is accused of making material misrepresentations to potential investors in Joy Coin, falsely stating that it contained 20% gold, and that he would personally reimburse investors for any potential losses.

"We allege that Guo Wengui is a serial fraudster who raised more than $850 million by promising investors exceptional returns on alleged cryptocurrency, technology and luxury investment opportunities," Gurbir S. Grewal, director of the SEC's Division of Enforcement, said in the statement. "In effect, Guo exploited the hype surrounding cryptocurrencies and other investments to lure thousands of people into victimization and fund a lavish lifestyle for himself and his family."

https://www.justice.gov/usao-sdny/pr/ho-wan-kwok-aka-mile...