Miles Guo’s Lawyer Denies Fraud Allegations, Says Companies Backed Chinese Whistleblower Movement

News | June 5, 2024 By:

On Friday, May 24, 2024, the attorney of exiled Chinese businessman and purported billionaire Miles Guo told a Manhattan federal jury that her client ran legitimate companies in support of a broad movement that opposed the Chinese Communist Party, rather than what prosecutors say was a multifaceted $1 billion fraud.

Sabrina Shroff, Guo’s attorney, opened her statements by explaining that Guo worked to support and grow a whistleblower movement seeking the removal of the ruling Chinese Communist Party (CCP). She said the CCP responded by surveilling, harassing, and hacking Guo, whose wife and daughter were imprisoned in China for years due to his political activity against the regime.

Shroff stated that GTV Media Group and Guo’s other businesses like his cryptocurrency venture, loan program, and concierge service were real companies dedicated to furthering the goals of the anti-CCP movement. “It was not a bet, it was not a scheme, it was not a con,” she told jurors. “It was none of those things.”

However, prosecutors argue that Guo defrauded over 5,500 investors of more than $1 billion through the businesses. Assistant U.S. Attorney Micah Fergenson said Guo amassed a large online following with his stance against the CCP but then preyed on followers’ trust by falsely promising risk-free investments.

Fergenson alleged that in 2020, Guo raised $452 million through an unregistered stock offering of GTV. Days later, Guo misappropriated $100 million and lost $30 million investing it for his son. Over $150 million was also stolen from investors who “loaned” funds to Guo’s collective of Chinese dissident groups.

The prosecution further accused Guo of improperly taking $37 million from his “The Himalaya Exchange” cryptocurrency venture, which included the stablecoin H-Dollar and coin H-Coin. Guo had claimed H-Coin was partially backed by gold.

If convicted, Guo faces felony charges of wire fraud conspiracy and money laundering conspiracy. He has been held without bail since his arrest last year. Meanwhile, Guo’s former chief of staff Yanping Wang pled guilty for her role in the alleged scheme.