Guan’s Crypto Money Laundering Case
The Department of Justice (DOJ) has announced the arrest and indictment of Weidong Guan, also known as Bill Guan, the Chief Financial Officer (CFO) of The Epoch Times. Guan is accused of participating in a transnational scheme to launder approximately $67 million of illegally obtained funds for his benefit and that of the media company.
According to the indictment, Guan, along with others, funneled the illicit funds into various bank accounts under the company’s name. He also managed the company’s “Make Money Online” (MMO) team, which was integral to the scheme. This team, along with other individuals, used cryptocurrency to amass tens of millions of dollars in illegal funds, including proceeds from fraudulently acquired unemployment insurance benefits. The funds were often converted to prepaid debit cards, which were then further laundered.
The “MMO Team” and Guan’s Methods
The DOJ detailed that the MMO Team obtained funds via a specific cryptocurrency platform at discounted rates—70 to 80 cents on the dollar—in exchange for cryptocurrency. Once deposited, these funds underwent further laundering through various bank accounts belonging to Media Entities, as well as Guan’s personal accounts, both bank and crypto.
“When banks raised questions about the funds, Guan allegedly lied repeatedly and falsely claimed that the funds came from legitimate donations to the media company,” said U.S. Attorney Damian Williams.
Company Annual Revenue Increases by 410%
A significant outcome of Guan’s scheme was a dramatic increase in The Epoch Times’ annual revenue. After the scheme’s initiation, the company’s revenue surged by approximately 410%, from around $15 million to $62 million.
“Today’s charges reflect this Office’s ongoing commitment to vigorously enforcing the laws against those who facilitate fraud through money laundering and to protecting the integrity of the U.S. financial system,” stated Williams.
The case against Weidong Guan underscores the continued efforts by the DOJ to clamp down on financial crimes, especially those involving the misuse of cryptocurrency to facilitate money laundering.
Stay tuned for further updates as this case unfolds.
