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Epoch Times Implicated in Crypto Money Laundering Scheme
The chief financial officer of multinational media company Epoch Times has been accused of participating in a multi-year scheme to launder tens of millions of dollars using cryptocurrencies.
Weidong “Bill” Guan, 61, of New Jersey, was arrested Sunday and appeared before a federal judge in New York on Monday. He faces charges of conspiracy to commit money laundering and bank fraud, to which he has pleaded not guilty.
The profits were allegedly “laundered” through a specific cryptocurrency platform and converted into an unspecified cryptocurrency at a rate of 70 to 80 cents on the dollar.
Guan is accused of being part of a “sprawling transnational scheme” to launder at least $67 million through the bank accounts of the New York-based media company and its related entities. Federal prosecutors allege that members of the company’s “Make Money Online” team, led by Guan, used cryptocurrency to knowingly purchase tens of millions of dollars in proceeds of crime. These proceeds included funds from fraudulently obtained unemployment benefits loaded onto prepaid debit cards.
Prosecutors say stolen personal information was used to open accounts in connection with the bleaching system. The laundered money was allegedly routed through other bank accounts held by Epoch Times and Guan’s personal bank and cryptocurrency accounts.
Epoch Times was described in the indictment as a “multinational media company” and was not named directly. In a statement, the news agency, linked to the Chinese spiritual movement Falun Gong, said it would cooperate with the federal investigation.
“The Epoch Times has a guiding principle that elevates integrity in its relationships above all else. The company intends to cooperate fully with any investigation into the allegations against Mr. Guan,” the statement said. The company also noted that Guan had been suspended until the matter was resolved.
Prosecutors say the charges are not related to the media company’s news-gathering activities. They noted that Epoch Times’ revenues increased by 410 percent, from $15 million to $62 million, when the alleged money laundering began. Guan allegedly lied to banks about the increase in transactions, attributing it to an increase in legitimate donations.
The Epoch Times has become politically conservative over the years and has supported the former president. Donald Trumpas well as various conspiracy theories.