Exiled Chinese businessman Guo Wengui is accused of defrauding investors in multiple schemes, including the Himalayan Coin scam that netted as much as $600 million.

When someone is accused of defrauding investors of more than $1 billion, the most interesting part of the indictment is always the juicy tidbits about what they bought with their so-called ill-gotten gains.

The same is true in the case of Guo Wengui, an exiled Chinese businessman with close ties to Donald Trump adviser Steve Bannon — who was arrested in 2020 on Guo's $37 million yacht.

Guo was charged with a series of alleged frauds, including a $600 million scheme involving the Himalayan exchange and two cryptocurrencies. Guo's purchases included not only a mansion, a yacht and a Ferrari, but also a pair of mattresses worth $36,000, a A $62,000 television and a $53,000 fireplace wood cradle.

Guo was arrested Wednesday morning, according to Damian Williams, the U.S. Attorney for the Southern District of New York. Over the past six months, Williams' office has seized $634 million from 21 bank accounts, as well as assets purchased with allegedly ill-gotten gains, including a Lamborghini.

Williams accused Guo of "lining his own pockets with stolen money," saying he "led a sophisticated conspiracy that defrauded thousands of his online followers out of more than $1 billion."

Williams' office said "Guo Wengui" was actually one of He Yunguo's five aliases. The 12 charges against him include seven counts of fraud, as well as conspiracy, money laundering and perverting the course of justice.

An alleged associate, William Je, has also been charged and is being sought by authorities.

The U.S. Securities and Exchange Commission simultaneously filed a lawsuit against the pair, charging them with an alleged $850 million fraud scheme.

"We allege that Guo is a serial fraudster who raised more than $850 million by promising investors outsized returns on purported cryptocurrency, technology and luxury investment opportunities," said Gurbir Grewal, director of the SEC's Division of Enforcement. dollars." He said:

"In reality, Guo exploited the hype and allure surrounding cryptocurrency and other investments to victimize thousands of people and fund his and his family's lavish lifestyle."

Himalayan Encryption Scheme

The alleged fraud includes Himalaya Exchange, "a purported cryptocurrency 'ecosystem'... [which] includes a stablecoin called Himalaya Dollar ('HDO' or 'H Dollar') and a cryptocurrency for Himalayan Coin ('HCN' or 'H Dollar'). 'H Coin')," Williams' office said.

The ICO of HCN and HDO was on November 1, with HCN trading at $0.10. The exchange claims its price rose to $27 within two weeks, according to the indictment.

The exchange scheme lasted from April 2021 through this month, according to the indictment. Guo said the H-coin is 20 percent backed by gold, which can be sold “if the H-coin becomes worthless.” He promised:

"Whoever loses money, I can say 100% compensation. Whoever loses money, I will bear it."

However, both coins can only be traded on Himalayan Exchange and HCN “cannot be traded or exchanged for other currencies.”

The two coins’ whitepapers even state in the fine print that “contrary to [Guo’s] representations,” neither is a cryptocurrency and instead uses “credit” for transactions.

The points “can only be used on the Himalayan Exchange or ‘Himalaya Ecosystem,’ and “there is no right to redeem them for fiat currency or crypto assets,” the complaint states.

Among other things, Himalayan Exchange funds were loaned to Guo to purchase a $37 million yacht.

Authorities seized $335 million in Himalayan funds on September 20 and 21, and over the next month or so $278 million was seized from bank accounts held in the names of Himalayan Exchange entities.

Three or more companies

U.S. prosecutors also allege Guo received $250 million from G|Clubs, an online membership organization for the wealthy that allegedly described itself as “a gateway to curated world-class products, services and experiences.” 's portal".

There’s also GTV Media Group, which is “touted as a broad media company.” Guo sold about $452 million worth of stock to about 5,500 investors in the private placement.

The investors then sold investments from a series of informal investment groups called "farms", purportedly part of the Himalayan Farms Alliance. It provides loans to GTV that are convertible into GTV shares at $1 per share.

Bloomberg notes that Bannon and Guo are reportedly "the two principal figures behind GTV," although it adds that "Bannon has not been accused of any wrongdoing."

It added that Bannon was arrested on Guo's yacht in 2020 and accused of embezzling funds from the We Build the Wall fund - collecting money to build a wall between the United States and Mexico - and then working on Trump received a presidential pardon on his last day in office.