In breaking news, Chinese businessman Guo Wengui, closely linked to former White House chief strategist Steve Bannon, has been found guilty on nine out of twelve criminal counts, including charges of fraud, racketeering, and money laundering. The announcement was made by US Attorney Damian Williams on July 17, marking the end of Guo’s fraudulent schemes that allowed him to fund a lavish lifestyle, including a $37 million yacht. Williams has assured that Guo will face decades in prison for his crimes following his sentencing on November 19. Guo has been in prison since his arrest in March 2023.
The connection between Guo and Bannon stems from their co-founding of GTV Media Group, which owned GTV, a video-sharing platform. Bannon, a prominent American media executive and political strategist, also worked as a former investment banker and chief strategist in President Donald Trump’s administration. In 2020, Bannon was arrested on Guo’s yacht for conspiracy to commit wire fraud related to the “We Build the Wall” fundraising project, aimed at constructing a border wall between the US and Mexico. Bannon is currently serving a four-month prison sentence for contempt of Congress in relation to his involvement in the January 6, 2021, Capitol riot and was later pardoned by Trump before leaving office.
Guo’s involvement in the crypto space raised millions of dollars from investors for a token known as “Himalaya Coin” or H-Coin (HCN), which he claimed was backed 20% by gold. The coin was primarily sold through Himalaya Exchange, attracting retail investors to raise up to $500 million. However, a former CEO of Himalaya Exchange, Jesse Brown, has revealed that H-Coin was never on-chain and did not meet the criteria to be classified as a legitimate crypto product. The Securities and Exchange Commission (SEC) has labeled Guo as a “serial fraudster,” taking advantage of the allure of cryptocurrencies to deceive investors.
Recent revelations about Himalaya Coin’s whitepaper raise questions about its legitimacy, highlighting structural flaws in the coin’s purchasing system and lack of on-chain addresses for both the stablecoin and the coin itself. The absence of standard disclosures for smart contract functionalities further casts doubt on Guo’s credibility and the validity of the project. These developments come at a crucial time as the 2024 elections approach, with Trump emerging as a lead candidate based on his substantial odds on Polymarket. Analysts and supporters believe that Trump’s campaign is evolving, particularly regarding his stance on cryptocurrencies, following a recent assassination attempt that has boosted his popularity.
In conclusion, the downfall of Guo Wengui and the questionable practices surrounding Himalaya Coin shed light on the risks and uncertainties in the crypto industry. The collaboration between Guo and Bannon, tainted by legal troubles and fraudulent activities, serves as a cautionary tale for investors and stakeholders in the market. As Trump reemerges as a potential candidate in the upcoming elections, his shifting position on cryptocurrencies and the impact of recent events on his campaign reflect the evolving landscape of politics and technology. With regulatory bodies like the SEC cracking down on fraudulent schemes, it is crucial for investors to exercise diligence and due diligence when considering investments in the crypto space.
