- The US Department of Justice (DOJ) has made significant advancements by indicting Bill Guan, the CFO of Epoch Times, for allegedly laundering around $67 million through crypto transactions.
- Guan is accused of being part of a transnational money laundering conspiracy, which involved himself, the media company, and its affiliates.
- According to the allegations, the scheme leveraged fraudulent unemployment insurance benefits among other illicit activities to amass millions.
Epoch Times CFO Faces Indictment for Alleged $67 Million Crypto Money Laundering Scheme
Multi-Million Crypto Money Laundering Scheme
According to U.S. Attorney Damian Williams, Bill Guan allegedly collaborated with various individuals to launder “tens of millions of dollars” acquired through fraudulent activities including fraudulent unemployment insurance claims. The indictment suggests that Guan, as CFO, played a central role in facilitating these transactions from 2020 through May 2024.
The “Make Money Online” team (MMO Team) under Guan utilized cryptocurrency to convert the illicit funds, which were initially obtained through fraudulent unemployment benefits loaded onto prepaid debit cards, among other means. This method allowed the team to purchase crime proceeds at a discount via a specific, though undisclosed, digital asset platform.
Additionally, stolen personal identification information was employed to create various accounts, including prepaid debit card accounts, cryptocurrency accounts, and bank accounts, to transfer these illicit funds to media entities linked to Epoch Times.
The funds were subsequently laundered through multiple bank accounts associated with these media entities, as well as through Guan’s personal bank and cryptocurrency accounts.
Potential Decades in Prison?
During the money laundering activities, Epoch Times reported a startling 410% increase in annual revenue, with total revenues surging to approximately $62 million. When questioned by banks about these unusually high transaction volumes, Guan falsely attributed the funds to donations. However, a letter from Guan in 2022 falsely claimed that donations made up an insignificant portion of the company’s revenue.
Guan, who resides in Secaucus, New Jersey, has been charged with conspiracy to commit money laundering, a crime that carries a maximum sentence of 20 years imprisonment. He is also facing two counts of bank fraud, each carrying a potential maximum sentence of 30 years in prison.
The investigation saw cooperation among multiple law enforcement agencies. Jonathan Mellone, a Special Agent with the Department of Labor Office of Inspector General (DOL-OIG), stated their commitment to investigating fraud related to the US Department of Labor’s unemployment insurance program. It is important to note that the charges are allegations at this stage, and any sentencing will be determined post-trial.
Conclusion
This indictment marks a significant development in the fight against financial crimes involving digital assets. As legal proceedings advance, the case will likely set critical precedents for how similar schemes are addressed in the future. Readers are advised to stay updated on this case as it progresses, as it has far-reaching implications for financial regulations and cryptocurrency governance.
