The Himalaya Exchange, founder Miles Guo, faces Racketeer Influenced and Corrupt Organizations (RICO) Act charges, including racketeering, wire and bank fraud, money laundering, securities fraud, and obstruction of justice.
Himalaya Exchange falsely claimed to be a cryptocurrency system, but lacked a public blockchain and traded exclusively on its platform. Guo promised compensation for losses and asserted 20% gold backing for each coin.
The indictment reveals misappropriated funds spent on extravagant items. Guo also used the Himalayas brand for a scheme involving the Himalaya Farm Alliance, diverting funds to maintain a yacht and private jet.
In collaboration with Steve Bannon, Guo’s media outlet GTV faced SEC charges for issuing unregistered securities. Allegedly, $400 million was illegally raised, with $100 million diverted to a hedge fund.
The interrelated money laundering scheme involved 500 accounts across global banks. Crypto-friendly banks, including Deltec and Prime Trust, featured in Guo’s interactions.
Miles Guo’s Himalaya Exchange saga reveals a disturbing mix of false promises, extravagant spending, and global financial manipulation, underscoring the need for vigilance in the crypto space.
Also Read: Himalaya Technologies Eyes $58 Million Crypto Play
