The FBI has arrested a former partner of a Trump advisor over a $1 billion cryptocurrency fraud. The accused has allegedly used his company’s cryptocurrency to deceive investors, promising high returns that never materialized. The arrest is the latest in a series of crackdowns by law enforcement agencies around the world on cryptocurrency crimes, including money laundering, terrorism financing, and fraud. As the cryptocurrency market continues to grow, it is important for investors to exercise caution and research companies and projects thoroughly before investing.
The U.S. Federal Bureau of Investigation (FBI) has reportedly arrested Chinese billionaire Guo Wengui over allegations of involvement in a multi-million dollar crypto scheme. Per reports, Wengui is one of several Chinese billionaires who were forced to leave their country, and had close ties with former President Donald Trump. It is said that Wengui was friends with political strategist and Senior Counselor for Trump, Steve Bannon. According to an ABC report, Wengui will stand trial in New York for wire, securities, and bank fraud. He and his financier Kin Ming Je are accused of using social media and other platforms to lure victims for their billion-dollar crypto scam. The proceeds of this scheme were allegedly used to purchase luxury items such as a mansion, a yacht, and Ferraris. The SEC believes that Wengui began the fraudulent scheme in 2020 through an unregistered and “fraudulent securities offering” based on a cryptocurrency called “H-Coin”. Wengui also falsely offered his victims an opportunity to purchase a stake in GTV Media Group, a company he founded with Bannon three years ago.