Chinese billionaire’s $1B fraud charges, Kwon’s $11M bet, Zhu Su and Islam: Asia Express

Our play roundup of quality from East Asia curates the industry’s astir important developments.

Chinese billionaire arrested successful U.S. for $1B fiscal fraud 

According to an announcement published by the U.S. Department of Justice (DOJ) connected Mar. 15, Chinese billonaire Ho Wan Kwok (aka Miles Guo and much commonly arsenic Guo Wengui), has been arrested connected a full of 12 charges, including ligament fraud, securities fraud, slope fraud, and wealth laundering. Among galore items, the DOJ alleges that Kwok/Guo “fraudulently obtained” much than $262 cardinal from victims done cryptocurrency level Himalayan Exchange.

The Himalaya Exchange included assets specified arsenic Himalaya Dollar (HDO), a purported stablecoin, and Himalaya Coin (HCN), a purported trading coin. According to the indictment, Guo told investors that HCN was 20% backed by golden and that helium would personally compensate investors for “100%” of trading losses.

“If anyone loses money, I tin accidental that I volition compensate 100%. I springiness you 100%. Whoever loses money, I volition carnivore it.”

Guo launched some HCN and HDO coins successful an archetypal coin offering (ICO) astir Nov. 1, 2021, erstwhile HCN was trading astatine astir $0.10 apiece. Two weeks later, the Himalaya Exchange website stated that each HCN was worthy 27 HDO, oregon $27, and had a full marketplace headdress of $27 billion.

Between Sept. 2022 to Mar. 2023, U.S. Authorities subsequently seized $634 cardinal successful Guo’s alleged fraud proceeds, including $278 cardinal from slope accounts held by Himalaya Exchange and related entities.At the clip of publication, societal accounts and Himalaya Exchange’s website appears to beryllium inactive online and active.

Ho Wan Kwok/Guo Wengui promoting the purported benefits of the Himalaya Coin successful 2021 (Youtube)

In different incident, Guo allegedly sold $452 cardinal successful communal banal successful an archetypal nationalist offering (IPO)to implicit 5,500 investors for shares of GTV Media Group. The DOJ allege that successful some incidents, the entreprenuer misappropriated a important information of investors’ funds and volition question forfeiture for the seized assets. Back successful 2021, the U.S. Securities and Exchange Commission took enforcement enactment against 3 of his companies with unregistered ICOs and IPOs. At the time, the firms agreed to pay $486.6 cardinal successful fines, prejudgment involvement of $17.6 million, and a civilian punishment of $35 cardinal combined.

The billionaire is reportedly a close-friend of erstwhile White House main strategist Steve Bannon. Rising to prominence done real-estate and operation successful China, helium fled the state successful 2014 aft receiving accusation of his imminent apprehension connected charges of bribery, kidnapping, wealth laundering, fraud and rape. He has since lived successful self-imposed exile successful the U.S., sought asylum, and is simply a vocal professional of the Chinese Communist Party (CPC). However, respective documents utilized by Guo to critique the CPC person been alleged to beryllium forged. An Interpol reddish announcement for his apprehension has been reportedly progressive since 2017.

To decision communism bargain my coin

For the Chinese billionaire, “taking down the CCP” is simply a extremity that neatly lines up with the promotion of crypto. In 2020, Guo founded the governmental question “New Federal State of China” (NFSC) with the stated purpose of overthrowing the CCP alongside the non-profit enactment Himalaya Supervisory, which is related to the aforementioned cryptocurrency exchange.

Aside from educating viewers connected the evils of communism, Guo besides utilized authoritative NFSC and Himalaya Supervisory branding to shill his followers astir the purported benefits of his HDO and HCN coins:

“Himalaya Coin volition crush Bitcoin successful the drawback of a digit if a definite state grants Himalaya Reserve oregon Himalaya Coin a ocular banking licence and a virtual banking exchange.”

In different “lecture” dated soon earlier his arrest, Guo explained to viewers that the “U.S. and Communist China are warring implicit the powerfulness to found blockchain standards that volition govern each integer currencies,” but the large takeaway is that the NFSC volition beryllium the 1 to look victorious successful the struggle:

“In the end, radical volition person to usage integer U.S. dollars, and then, the U.S. volition beryllium successful complaint of mounting up the aboriginal blockchain standards. However, the U.S. has encountered a rival called the CCP. So erstwhile these 2 tigers are fighting, we [the NFSC] volition extremity up being the winner.”

Guo claims to person invested $100 cardinal into the NFSC movement. However, the root of funds is reportedly nether probe by the U.S. Federal Bureau of Investigation. The Chinese billionaire was arrested connected Mar. 15 successful New York and soon afterward, his luxury flat successful Manhattan caught fire. It is not wide if the 2 incidents are related.

Guo explaining to followers, soon earlier his arrest, however the NFSC volition beryllium the eventual victor successful a planetary conflict betwixt the U.S. and CCP for blockchain supremacy. (Youtube)

Do Kwon officially loses erstwhile highly publicized LUNC bet

In March 2022, South Korean Terraform Labs CEO and co-founder Do Kwon accepted 2 bets from cryptocurrency traders GiganticRebirth (GCR) and Algod, totaling $11 million, wagering that the terms of Terra Luna (LUNC) would not beryllium little than $92.4 and $88 per token, respectively, by March 13, 2023. The bets resulted successful a $22 cardinal prize wealth pool, held successful escrow by blockchain property Cobie.

Interested successful aforesaid stake for 10 cardinal dollars [considered offering 50 million, but escrow becomes tricky]

Would donate fractional to charity

Expect terms to pump abbreviated term, but successful 1 year, supremely assured the existent communicative is lost@stablekwon https://t.co/2SJAvZh4Yp

— GCR (@GiganticRebirth) March 14, 2022

After LUNC’s terms plummeted to near-zero successful May 2022 arsenic portion of the $40 cardinal Terra Luna ecosystem collapse, Cobie paid retired the bets, purchasing LUNC arsenic a hedge successful lawsuit its terms recovered. However, Cobie’s hedge was reportedly mislaid erstwhile cryptocurrency speech FTX filed for bankruptcy successful Nov. 2022, freezing implicit 1 cardinal creditors’ assets and 9 cardinal users’ deposits. The existent presumption of the funds remains unclear.

Do Kwon listening intensely successful a Twitch watercourse post-Terra illness arsenic convicted felon Martin Shkreli explains wherefore “jail’s not that bad.” (UpOnly)

The U.S. Securities and Exchange Commission has since charged Terraform Labs and Kwon with “defrauding investors successful crypto schemes,” portion the FBI and Department of Justice began investigating the company’s illness successful March 2023.

If losing his astir full nett worthy successful the LUNC implosion and being retired an further $11 cardinal from the stake wasn’t enough, Kwon is besides reportedly connected the tally from authorities successful Serbia, a state with nary extradition statement with South Korea. Interpol issued a reddish announcement apprehension warrant for Kwon successful September 2022 astatine the petition of South Korean prosecutors, accusing him of fraud related to Terra Luna’s downfall. South Korean prosecutors person besides been successful Serbia successful hunt of the blockchain enforcement since Feb. 2023.

I really paid retired the stake soon aft Luna went to 0, and past bought capable Luna to hedge successful lawsuit it someway went backmost to $88. But I mislaid my hedge (custodied successful FTX) truthful if Luna goes to $88 successful the adjacent 3 months I americium fucked 👍

— Cobie (@cobie) December 17, 2022

Zhu Su’s spiritual travel done bankruptcy and Islam

Compared to the precarious concern faced by Do Kwon, Zhu Su, and Kyle Davies, some co-founders of the now-bankrupt Singaporean hedge money Three Arrows Capital (3AC), look to beryllium doing rather well. Despite being connected the run from creditors with a full assertion of implicit $10 billion, the 2 person yet to look immoderate transgression charges implicit their relation successful the 3AC bankruptcy that brought down themselves and large counterparties successful the centralized concern abstraction specified arsenic Voyager Digital and Genesis Global.

Liquidators assertion that Davies and Su are located determination successful Indonesia oregon United Arab Emirates, wherever overseas tribunal orders are reportedly pugnacious to enforce. Nowadays, Davies actively shares his views connected trending fiscal stories via Twitter, portion occasionally trying to solicit sympathy implicit the “frustrations” of 3AC’s current bankruptcy process.

Su is besides progressive connected Twitter, but his interests person turned from the worldly satellite to the overmuch much blase realms of philosophy, religion and, introspection. On Mar. 15, Su quoted Prophet Muhammud (PBUH), the laminitis of Islam, arsenic follows:

“The Messenger of Allah, bid and blessings beryllium upon him, said, There is nary forbearance unless 1 has blundered, and determination is nary contented unless 1 has experience.”

Su antecedently made a akin notation to Islam connected Nov. 27, 2022, penning that “Allah does not complaint a psyche but that which is wrong its capacity.”

Interestingly capable cryptocurrency and blockchain is presently a substance of aggravated contention wrong Islam circles. Some Islamic scholars person labeled each cryptocurrencies and blockchain-related enactment arsenic haram (forbidden), making them prohibited nether each circumstances. Others, specified arsenic Dubai’s crown prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, enactment the exertion and helium wants to incentivize astatine slightest 5,000 blockchain and metaverse companies to relocate to the United Arab Emirates by 2027.

The Messenger of Allah, bid and blessings beryllium upon him, said, “There is nary forbearance unless 1 has blundered, and determination is nary contented unless 1 has experience.”

— Zhu Su 朱溯 (@zhusu) March 15, 2023