Epoch Times CFO Indicted Over $67M Cryptocurrency Money Laundering Scheme

According to CryptoPotato, Bill Guan, the Chief Financial Officer of Epoch Times, has been indicted by the US Department of Justice (DoJ) for his alleged involvement in an international money laundering scheme. The DoJ claims that Guan laundered approximately $67 million of illicit funds using cryptocurrency from 2020 to May 2024. Guan, along with his team, allegedly 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 were bought at discounted rates of 70 to 80 cents per dollar via a specific cryptocurrency platform and then exchanged for digital assets. Stolen personal identification information was reportedly 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. Around the time the money laundering scheme began, the media company's annual revenue surged by approximately 410%, from about $15 million to $62 million. When questioned by banks about the increased transactions, Guan allegedly lied, claiming that the funds were from donations. However, in 2022, Guan wrote to a congressional office, falsely stating that donations made up 'an insignificant portion of the overall revenue' of the media company. Guan, a 61-year-old executive from Secaucus, New Jersey, now faces charges for conspiracy to commit money laundering, which could result in a maximum 20-year prison sentence, and two counts of bank fraud, each carrying a potential 30-year sentence. US Attorney Damian Williams commented on the allegations, stating that Guan conspired with others to benefit himself, the media company, and its affiliates by laundering tens of millions of dollars in fraudulently obtained unemployment insurance benefits and other crime proceeds. Williams emphasized the office's commitment to enforcing laws against those who facilitate fraud through money laundering and to protecting the integrity of the U.S. financial system.