DOJ Charges Epoch Times Exec with Laundering $67M Using Cryptocurrency

The US Department of Justice (DoJ) on Tuesday charged Bill Guan, chief financial officer of The Epoch Times.

The Justice Department alleges that Guan was involved in an international scheme to launder around $67 million in illicit funds using cryptocurrency.

The fraud

From 2020 to May 2024, Bill Guan participated in a large-scale international money laundering scheme, collaborating with others to launder approximately $67 million of 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 led the company's “Make Money Online” (MMO) team, which operates from an overseas office, to facilitate the plan. Under his direction, the team used cryptocurrency to purchase tens of millions of dollars in illicit proceeds, primarily from fraudulently obtained unemployment benefits loaded onto prepaid debit cards.

These proceeds of crime were purchased at discount rates of 70 to 80 cents on the dollar through a specific cryptocurrency platform and then exchanged for digital assets. The stolen personally identifiable information was used to open multiple accounts, including prepaid debit card accounts, cryptocurrency accounts, and bank accounts, to transfer the illicit funds to the media company's bank accounts.

Around the time the money laundering scheme began, the media company's annual revenue increased approximately 410%, from approximately $15 million to $62 million. When the banks questioned Guan about the increase in transactions, he allegedly lied and claimed instead that 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 Media Company.

Possible sentence of 80 years

The 61-year-old executive from Secaucus, New Jersey, now faces charges of conspiracy to commit money laundering, which could result in a maximum sentence of 20 years in prison, and two counts of bank fraud, each of which carries a possible 30 year sentence.

Commenting on the allegations, 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 unemployment insurance benefits. obtained fraudulently and other proceeds of crime. .

“Today’s charges reflect this Office’s continued commitment to vigorously enforcing laws against those who facilitate fraud through money laundering and to protecting the integrity of the American financial system.”