According to CNN, after the verdict was read, Guo Wengui smiled at his legal team and dozens of supporters in court, then turned around and hugged lawyer Sabrina Shroff, shaking hands with other members of the defense team.
Public information and reports show that Guo Wengui, 57 years old this year, was the actual controller of Henan Yuda Investment Co., Ltd. and Beijing Pangu Investment Co., Ltd. On November 3, 2014, Guo Wengui publicly exposed through Zhengquan Holdings that Li You, CEO of Peking University Founder Group, and others were suspected of insider trading. He left China that year and subsequently created a so-called insider persona through online live streaming and other activities, gaining a large number of overseas followers.
According to a survey conducted by the United States, Guo Wengui raised over $1 billion from his online fans between 2018 and 2023, publicly claiming it was for investing in his business and cryptocurrency plans, but in reality it was used as a “personal piggy bank”.
In 2021, three companies associated with Guo Wengui, including GTV, paid $539 million to resolve allegations of illegal stock issuance by the US Securities and Exchange Commission (SEC) against these three companies. In addition, the SEC also accuses GTV and Saraca of conducting illegal unregistered digital asset securities issuances.
According to prosecutors, Guo Wengui’s other scams involved a private membership only club (with a minimum membership threshold of $10000), as well as cryptocurrency platforms. In addition, the US government has accused him of misappropriating investor funds to purchase luxury goods, including a red Lamborghini, a $4 million Ferrari, and a $26 million New Jersey mansion.
Guo Wengui also maintains a close relationship with former US President Trump’s senior strategic advisor Steve Bannon. Bannon was sentenced to four months in prison for contempt of the United States Congress and reported to a federal prison in Connecticut on July 1st.
In the closing statement of the Guo Wengui case on that day, the prosecutor told the jury that Guo Wengui had paid Bannon $1 million with the intention of using him to enhance his reputation in the United States.
