• Chinese billionaire Guo Wengui was arrested by the FBI for his alleged involvement in a multi-million dollar crypto fraud.
• Guo had close ties with former president Donald Trump, and was accused of wire, securities, and bank fraud with financier Kin Ming Je.
• The suspects allegedly used the proceeds of the illegal scheme to acquire luxury items such as Ferraris, a 50,000-square-foot mansion, and a yacht.
Chinese Billionaire Arrested for Crypto Fraud
Several reports have confirmed that Chinese billionaire Guo Wengui has been arrested by the U.S. Federal Bureau of Investigation (FBI) for his alleged participation in a multi-million dollar crypto fraud.
Ties to Former President Donald Trump
Wengui had close ties with former president Donald Trump which is why he was granted a pardon after Steve Bannon – political strategist, Chief Strategist, and Senior Counselor for Trump – was charged and convicted of fraud.
$1 Billion Crypto Fraud Scheme
The FBI and the Securities and Exchange Commission (SEC) accused Wengui, under the name Ho Wan Kwok, and his financier Kin Ming Je of wire, securities, and bank fraud. Authorities claim that Ming Je and Wengui used their influence via social media to attract victims for their billion-dollar cryptocurrency scheme.
Luxury Items Acquired from Fraudulent Funds
The suspects allegedly used the proceeds of the illegal scheme to acquire luxury items such as Ferraris, a 50,000-square-foot mansion, a yacht; all funded by fraudulent funds.
SEC Complaint Against Wengui
The SEC believes that Guo Wengui began this illegal fraud scheme in 2020 through an unregistered security offering based on cryptocurrency called “H Coin”, according to their complaint against him.