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The Department of Justice accuses the Epoch Times executive of laundering $67 million using cryptocurrencies
The US Department of Justice (DoJ) on Tuesday indicted Bill Guan, the chief financial officer of the Epoch Times.
The Justice Department alleges that Guan was involved in an international scheme to launder approximately $67 million in illicit funds using cryptocurrency.
The scam
From 2020 to May 2024, Bill Guan engaged in a large-scale international money laundering scheme, collaborating with others to launder approximately $67 million in illegal funds into the bank accounts of his media company and its related entities, according to the official. Press release by the Department of Justice.
Guan managed the company’s “Make Money Online” (MMO) team, operating from an overseas office, to facilitate the project. Under his direction, the team used cryptocurrency to purchase tens of millions of dollars in illicit proceeds, mostly from fraudulently obtained unemployment benefits loaded onto prepaid debit cards.
These proceeds of crime were purchased at discounted rates of 70 to 80 cents per dollar via a specific cryptocurrency platform and then exchanged for digital assets. The stolen personally identifiable information was used to open various accounts, including prepaid debit card accounts, cryptocurrency accounts, and bank accounts, to transfer the illicit funds into the media company’s bank accounts.
During the time the money laundering scheme began, the Media Company’s annual revenue increased approximately 410%, from approximately $15 million to $62 million. When banks questioned Guan about the increase in transactions, he allegedly lied and instead said the funds came from donations.
However, in 2022, Guan wrote to a congressional office, falsely claiming that the donations constituted “an insignificant portion of the overall revenue” of the Media Company.
Potential 80 year sentence
The 61-year-old executive from Secaucus, New Jersey, now faces charges of conspiracy to commit money laundering, which could carry a maximum prison sentence of 20 years, and two counts of bank fraud, each carrying a potential 30-year sentence.
Commenting on the charges, US Attorney Damian Williams said:
“As alleged, Bill Guan, chief financial officer of a global newspaper and media company, conspired with others to benefit himself, the media company and its affiliates by laundering tens of millions of dollars in fraudulently obtained unemployment benefits and other proceeds of crime”. .
Today’s charges reflect this Office’s ongoing commitment to vigorously enforce the laws against those who facilitate fraud through money laundering and to protect the integrity of the U.S. financial system.”