Topline
U.S. authorities arrested exiled former Chinese billionaire Guo Wengui on Wednesday in New York, alleging he oversaw an international $1 billion fraud scheme.
Guo Wengui poses in his Manhattan apartment in 2017.
Key Facts
Among the 12 criminal counts Guo and his associate William Je face are securities and wire fraud, international money laundering and obstruction of justice, according to the newly unsealed indictment.
Guo, who also goes by the names Miles Kwok and Ho Wan Kwok, oversaw a scheme beginning in 2018 that sought to defraud thousands of investors into his GTV and Himalaya Exchange businesses of $1 billion, according to prosecutors.
Authorities seized $634 million in allegedly ill-gotten proceeds from the ploy between September and March, including a $389 million seizure in September from bank accounts tied to Guo at Silvergate Capital, the crypto-focused institution that shut its doors last week amid significant liquidity issues.
Guo allegedly used proceeds from the plot to finance his exorbitant lifestyle, buying a $3.5 million Ferrari and a $40 million New Jersey mansion.
A close associate for former Trump Administration official Steve Bannon, Guo fell off Forbes’ billionaire list in 2016 after he lost $500 million during a margin call from the Swiss bank UBS.
Guo’s attorney did not immediately respond to a request for comment.
Crucial Quote
“My money is clean. I’m willing to accept everything being in full public view,” Guo said in 2017.
Surprising Fact
Silvergate’s total deposits declined from $13.3 billion in the third quarter of 2022 to $6.3 billion in the final three months of 2023, a drop largely attributed to its dealings with the bankrupt cryptocurrency exchange FTX. But the seizure of Guo’s money at the firm likely played a role in the bank’s liquidity issues, with his $389 million in known holdings accounting for roughly 3% of Silvergate’s total assets as of September.
Further Reading
The Chinese Fugitive Living In A $67 Million Manhattan Apartment (Forbes)
Chinese Fugitive Guo Wengui Lost $500 Million In UBS Margin Call (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2023/03/15/former-chinese-billionaire-guo-wengui-arrested-for-1-billion-fraud/