Chinese Billionaire Manipulated Gettr to Promote Crypto

Chinese Billionaire, Ho Wan Kwok, popularly called Guo Wengui, who recently filed for bankruptcy, has been accused of manipulating Gettr to promote cryptocurrencies. According to The Washington Post report, anonymous Gettr employees reported that Guo Wengui had much influence on the platform’s decision-making.

Previously on March 15, the US Department of Justice announced a twelve-count indictment on Ho Wan Kwok (Guo Wengui). The billionaire is facing multiple charges of wire fraud, securities fraud, bank fraud, money laundering, obstruction of justice, etcetera.

Ho Wan Kwok’s (Guo Wengui) involvement With Gettr

Guo Wengui was an influential Gettr investor who played a significant role in the platform’s financing, hiring, and decision-making activities. Founded in July 2021 by Jason Miller (a former Donald Trump aide), Gettr, is a social media platform and microblogging site that targets American conservatives. 

While Miller had initially claimed that Guo had no authority in Gettr, anonymous employees reported otherwise. These employees told The Washington Post that Guo frequented Gettr offices on the same floor as some of his other businesses.

They also claimed that Miller reported to Guo and his financial manager, William Je, and several of Gettr staff were Guo’s devotees. The anonymous employees also alleged that Guo encouraged users to participate in the Capitol riots claiming the violence caused that day was due to ANTIFA.  

According to the allegations, Guo also contributed to introducing Gettr Coin, which the platform touted as a means to reward users. The platform offered Gettr Coin to users at 10 cents per coin while they could transfer it to other wallets on the Gettr site. 

However, the Gettr site gave a contradictory description of the coin, claiming it as unredeemable without monetary value.

Given Guo Wengui’s experience with crypto and Himalaya Exchange, the above accusations could be factual. Even the multiple count charges by the DOJ and SEC provide more grounds to doubt his actual involvement with Gettr.

Guo Wengui Arrested By The US Department of Justice On Multiple Count Charges

On March 15, the US Department of Justice arrested Guo Wengui (Ho Wan Kwok) after a twelve-count indictment charge. In their press release, the authorities stated that Guo Wengui fraudulently obtained over $262 million from victims through the Hilmalaya Exchange in October 2021. 

Himalaya Exchange is an online cryptocurrency trading platform with a stablecoin called Himalaya Dollar (HDO) and a native coin called Himalaya Coin (HCN). According to the US Department of Justice, Guo Wengui (alias Kwok) falsely promoted HCN and HDO, distributing videos on social media where he publicly described them as cryptocurrencies. Guo lured people into investing in the coins touting high returns, and even promised 100% compensation to investors if they lost their money.

William Je even helped him fake a €3.5 million Ferrari purchase through the Hilmalaya Exchange as a make-believe of the project’s legitimacy. In addition, the authorities accused Guo Wengui, Je, and the Himalaya Exchange of market manipulation. 

They stated that the exchange claimed that HCN’s price increased to $27 within two weeks of its initial coin offering on November 1, 2021, when it traded at just 10 cents. That makes a 26,900% increase in value in just two weeks.

Also, the DOJ alleged the duo (Kwok and Je) misappropriated funds raised through the Hilmalaya Farm Loan Program. According to the authorities, they used approximately $2.3 million to cover maintenance expenses of a 145-foot luxury yacht worth ~$37 million. The yacht is nominally owned by Kwok’s close relative but used by Kwok.

Kwok, alias Guo Wengui, is at cross-chairs with US authorities and regulators. He could serve potentially long jail terms according to sentences by a Judge.

Earlier in September 2021, the Chinese exile billionaire, alongside three media companies, was charged with illegal security offerings by the SEC. According to the SEC, Guo and his affiliated media companies settled with a fine of $539 million.

The same month, US authorities served seizure warrants to confiscate millions of proceeds from bank accounts held in Hilmalaya Exchange and other Kwok and Je-affiliated entities’ names.

Guo Wengui And Accomplice Might Serve A Long Prison Sentence

Following the DOJ’s press release, Guo Wengui (alias Ho Wan Kwok) committed multiple fraud and money-laundering-related crimes that could earn him several years in jail. The DOJ outlined the maximum potential penalty for Kwok and Je’s crime following prescription by Congress. However, the actual jail term will depend on the judge’s sentence.

The Chinese billionaire is not only in the DOJ’s black book but also under the US Securities and Exchange Commission’s radar. On March 15, the SEC filed litigation before the United States District Court Southern District of New York against Kwok (Guo Wengui) and Kin Ming Je (William Je). 

The regulator accused the duo of fraud-related crimes and illegal securities offerings. The watchdog demands that the defendants dislodge all ill-gotten funds and face the penalty as the jury will determine.