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The U.S. Securities and Exchange Commission (SEC) has charged Chinese businessman Guo Wengui with H-Coin cryptocurrency fraud and money laundering.
According to the prosecutor's office, Wengui was arrested in March 2023, and his sentence is due to be announced on November 19. The defendant managed to raise about $500 million from retail investors for the Himalaya Coin token, also known as H-Coin (HCN), which, according to him, was 20% backed by gold. The token was sold mainly through the Himalaya Exchange.
The regulator claims that H-Coin was not registered as a security and did not even qualify as a crypto product. The Himalaya Coin whitepaper introduces a token purchase system based on user credit. Investors had to purchase loans through the internal Himalaya Exchange stablecoin-Himalaya Dollar. At the same time, investors were not disclosed information about the functions of the smart contracts involved.
Damian Williams, the U.S. attorney for the Southern District of New York, said that Wengui fraudulently raised funds from investors and then spent the money on a lavish lifestyle, including the purchase of a mansion, a Lamborghini car and a yacht worth $37 million. Williams said that the violator faces several decades in prison.
According to the prosecutor's office, Wengui was arrested in March 2023, and his sentence is due to be announced on November 19. The defendant managed to raise about $500 million from retail investors for the Himalaya Coin token, also known as H-Coin (HCN), which, according to him, was 20% backed by gold. The token was sold mainly through the Himalaya Exchange.
The regulator claims that H-Coin was not registered as a security and did not even qualify as a crypto product. The Himalaya Coin whitepaper introduces a token purchase system based on user credit. Investors had to purchase loans through the internal Himalaya Exchange stablecoin-Himalaya Dollar. At the same time, investors were not disclosed information about the functions of the smart contracts involved.
Damian Williams, the U.S. attorney for the Southern District of New York, said that Wengui fraudulently raised funds from investors and then spent the money on a lavish lifestyle, including the purchase of a mansion, a Lamborghini car and a yacht worth $37 million. Williams said that the violator faces several decades in prison.
