No connection has been established yet but certain documents showed that the newspaper’s revenue skyrocketed by about 410%, moving from $15 million in 2019 to roughly $62 million the following year.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Another Executive from Epoch Times is currently neck-deep in a crypto fraud case that involves millions of dollars. Epoch Times CFO Bill Guan allegedly participated in a scheme that laundered $67 million in illicit funds to benefit himself and the company. Consequently, the United States Department of Justice (DoJ) indicted him on Tuesday on one count of conspiring to commit money laundering and two counts of bank fraud.
Epoch Times, which is popular for its criticism of the Chinese government, ran a “Make Money Online” scheme and Guan was in charge of managing its affairs. The 61-year-old CFO led this outlet from 2020 through to around May 2024 and it was during this time that he got involved in the laundering activity.
According to prosecutors, the team behind the scheme purchased crime proceeds by utilizing cryptocurrency. The purchases were made at a discount and then proceeds were later transferred into bank accounts held by entities affiliated with the newspaper house.
Again, the proceeds were returned to Epoch Times in multiple transactions of tens of thousands including through prepaid debit cards and financial accounts opened using stolen identification information.
“Under Guan’s management, members of the team and others used cryptocurrency to knowingly purchase tens of millions of dollars in crime proceeds, including proceeds of fraudulently obtained unemployment insurance benefits, that had been loaded onto tens of thousands of prepaid debit cards,” the DoJ said in its shared release.
No connection has been established yet but certain documents showed that the newspaper’s revenue skyrocketed by about 410%, moving from $15 million in 2019 to roughly $62 million the following year. Banks had approached Guan about the source of his fund but he claimed they were from donations.
Even though he has not been proven guilty, the political conservative media outlet claimed to have suspended Guan until the matter was resolved.
Additionally, Epoch Times says it “intends to and will fully cooperate with any investigation dealing with the allegations against Mr. Guan”. Meanwhile, the company is yet to make an official comment as regards the Make Money Online scheme.
On the other hand, Guan is yet to enter any plea but if convicted and proven guilty beyond a reasonable doubt, he is likely to face up to 30 years in prison. Similarly, the crypto exchange which facilitated the Epoch Times CFO laundering scheme was not disclosed.
This underscores the growing incidence of fraud cases in the crypto ecosystem and authorities’ commitment to punishing the defaulters. In the last six months, quite a number of scam cases involving cryptocurrencies have shown up. A while back, the US Securities and Exchange Commission (SEC) indicted crypto miner Geosyn Mining on claims that it had defrauded more than 64 investors to the tune of $5.6 million.
In Geosyn’s case, the prosecutor stated that its founders lied about the crypto mining rigs they operated and used the customers’ funds for personal expenses.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
