Miles Guo convicted of billion-dollar fraud: the collapse of a business empire

In a historic verdict, Miles Guo, a Chinese-born magnate also known as Guo Wengui, has been found guilty of orchestrating one of the largest scams targeting his own followers. A unanimous jury determined that Miles Guo is responsible for conspiracy to commit organized crime, securities fraud, electronic fraud, and money laundering, according to federal prosecutor Damian Williams. The conviction marks the end of a saga that has captured the attention of U.S. officials, specialized media, and political observers.

Miles Guo’s Scam Scheme: How He Defrauded Investors

Prosecutors presented evidence during the trial showing that Miles Guo systematically exploited his followers’ trust to fund an unprecedented luxury lifestyle. The total amount of the scam is nearly one billion dollars, according to federal authorities. The funds were funneled through his company GTV Media Group, where Miles Guo promised investors returns and business opportunities that never materialized.

The core of this deception network was persuading retail investors to hand over their savings with the promise of extraordinary gains. Instead, Miles Guo used the funds to purchase high-value properties, luxury yachts, and maintain a lifestyle incompatible with his reported legal income. When Guo was arrested in March 2023 in New York, he had been operating his fraud empire for years without interference.

Separately, the Securities and Exchange Commission (SEC) filed charges against Miles Guo for an additional scheme that raised $500 million. This plan allegedly involved H-Coin, a cryptocurrency project promoted by Miles Guo as backed 20 percent by gold. Investors later discovered these claims were completely false, adding another layer of deception to his extensive fraud history.

Guo’s Fall: From Prominent Businessman to Federal Defendant

Miles Guo began as a significant business figure in American right-wing political circles. However, his downfall was as dramatic as his rise. Since his arrest in 2023, Miles Guo has remained in federal custody while facing multiple charges. Federal prosecutors warn he could face decades in prison.

Shortly after his arrest, a fire broke out in the luxury attic of Miles Guo’s residence in Manhattan’s Upper East Side, adding more mystery to his already complicated legal situation. This incident occurred while his bank accounts were frozen and his assets seized as evidence by federal authorities.

Miles Guo’s Connections to U.S. Political Figures

One of the most notorious aspects of Miles Guo’s case is his long-standing association with Steve Bannon, the political strategist who briefly served as a White House advisor during the Trump administration. Miles Guo and Bannon collaborated on a controversial political initiative called the “New Federal State of China,” a project claiming to aim at fostering political change in the Chinese government.

This connection gained prominence when Bannon was arrested in 2020 aboard a yacht owned by Miles Guo. Bannon’s arrest was related to charges of conspiracy to commit electronic fraud and money laundering connected to a fundraising scheme to build a border wall. Although Bannon was later pardoned by Trump, he faced additional charges in separate cases promoted by state prosecutors.

This web of political relationships did not go unnoticed by federal investigators, who meticulously documented how Miles Guo leveraged his political influence circle to attract and manipulate potential investors.

Broader Repercussions: Regulation Under Scrutiny

The Miles Guo case has had ripple effects beyond his individual conviction. The prediction market platform Kalshi recently identified and sanctioned two users for alleged insider trading. One of these users was employed by Beast Industries, the parent company of well-known content creator MrBeast, who allegedly conducted transactions based on non-public information.

The Commodity Futures Trading Commission (CFTC) issued an official statement regarding Kalshi’s actions, citing these cases as potential violations of federal regulation. The agency’s president emphasized that platforms like Kalshi serve as a “first line of defense” against insider trading in financial markets.

This regulatory scrutiny reflects broader concerns by U.S. authorities about the integrity of emerging markets and the need for strict oversight in evolving financial spaces, a topic directly relevant given the massive scale of the fraud committed by Miles Guo.

Note on Media Coverage

CoinDesk, a cryptocurrency-focused media outlet with multiple journalism awards, reported these details in accordance with its established editorial policies. CoinDesk is part of Bullish (NYSE: BLSH), a global digital assets platform focused on institutions that provides market infrastructure and sector information. CoinDesk employees, including journalists, may receive compensation in the form of Bullish shares, which the publication discloses in the interest of transparency.