PANews reported on March 16 that according to The Block, the U.S. Department of Justice said on Wednesday that "Red Notice" fugitive Miles Guo was arrested in New York on charges of a $1 billion fraud conspiracy involving cryptocurrency. U.S. Attorney Damian Williams said in a statement that Guo, who has multiple names, deceived thousands of online fans and bought "a 50,000-square-foot mansion, a $3.5 million Ferrari, and even two $36,000 mattresses" for himself and those around him. The U.S. Attorney's Office for the Southern District of New York said that Kin Ming Je (also known as William Je) and Guo Wengui "fraudulently induced" fans to fund an online membership club called G|CLUBS.

The Justice Department said Guo and Kin Ming Je also “defrauded” more than $262 million through the so-called Himalaya Exchange, a crypto “ecosystem” that claimed to have a stablecoin called “Himalayan Dollar” and a trading coin called “Himalaya Coin.” Guo and Kin Ming Je face a total of 11 charges and face decades in prison. Kin Ming Je remains at large.

The U.S. Securities and Exchange Commission (SEC) also filed charges against the two on Wednesday, alleging that they raised more than $850 million through an "unregistered and fraudulent offering." The SEC said Guo Wengui is accused of raising hundreds of millions of dollars through Himalaya Coin and related stablecoins alone. "Guo Wengui allegedly made material false statements to potential investors in H-Coin, falsely stating that 20% of the value of H-Coin was backed by gold and falsely stating that he would personally compensate investors for any potential losses," the SEC said. H-Coins are unregistered securities, the SEC said.