Epoch Times CFO Charged With $67M Fraud Scheme Involving Crypto Platform

Epoch Times CFO Bill Guan was accused of participating in a scheme to launder $67 million in illicit funds to benefit himself and the company.

The scheme involved using cryptocurrency to purchase the proceeds of crime at a discount and transferring them to the company’s accounts; This led to a significant increase in annual revenue reported by The Epoch Times.

Bill Guan, chief financial officer of the Epoch Times, was indicted by the U.S. Department of Justice (DoJ) early Tuesday. The Justice Department accused him of participating in a scheme to launder $67 million using crypto.

Epoch is a popular politically conservative media outlet known for its criticism of the Chinese government.

Guan is accused of spearheading a scheme in which he led Epoch’s “Make Money Online” team overseas from 2020 to May 2024. These accusations are not related to the company’s news and information gathering activities.

“Under Guan’s direction, team members and others knowingly used cryptocurrency to purchase tens of millions of dollars in criminal proceeds, including proceeds from fraudulently obtained unemployment insurance benefits, which were loaded onto tens of thousands of prepaid debit cards,” the DoJ said. .

The proceeds were then allegedly “laundered” through a specific cryptocurrency platform and converted into an unspecified cryptocurrency for between 70 and 80 cents per dollar. Team members then opened accounts using the stolen personal identification information and transferred the profits into those accounts and then into accounts held in their names.

These funds were then further laundered through other bank accounts held by the media outlet’s accounts, Guan’s personal bank accounts, and crypto accounts.

Guan is charged with conspiracy to commit money laundering and bank fraud. While the money laundering charge carries a maximum sentence of 20 years in prison, each bank fraud charge can result in up to 30 years in prison, according to the Justice Department’s indictment.

Hints of possible wrongdoing emerged as investigators began examining the 410% increase in the company’s annual revenue; This increase increased from a relatively lower figure of $15 million to $62 million. Guan claimed that the increase in funds came from “donations” at the time, which raised doubts.