Epoch Times CFO Charged With $67M Fraud Scheme Involving Crypto Platform
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
Chief Financial Officer of Epoch Times, Bill Guan, was indicted by the US Department of Justice (DoJ) on Tuesday. The DoJ accuses him of being involved in a scheme to launder $67 million using crypto.
Epoch is a popular political conservative media outlet known for its criticism of the Chinese government.
Guan is accused of spearheading a scheme in which he managed Epoch's "Make Money Online" team overseas from in or about 2020 through or about May 2024. These charges do not concern the firm's news and information-gathering activities.
"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," DoJ said.
The proceeds were then allegedly "laundered" through a certain cryptocurrency platform and turned into an unspecified cryptocurrency at 70 to 80 cents on the dollar. Team members then used stolen personal identification information to open accounts and funnel the profits there and subsequently into accounts held in their own names.
These funds were then further laundered through other bank accounts held by the media entity's accounts, Guan's personal bank accounts and through his crypto accounts.
Guan faces charges of conspiring to commit money laundering and bank fraud. The money laundering charge carries a maximum sentence of 20 years, while each bank fraud charge could result in up to 30 years imprisonment, as per the DoJ indictment.
Hints of possible wrongdoing emerged after investigators started looking into the company's 410% increase in annual revenue, which flew to $62 million from a relatively lesser$15 million. Guan claimed the boost in funds came from "donations" at the time, which riled suspicion.
