Chinese Businessmen Arrested for Running Fictitious G|CLUBS and Himalayan Cryptocurrency Exchange Scam worth $1 Billion

US authorities have detained one of the masterminds behind the G|CLUBS club and the Himalayan Cryptocurrency Exchange, both of which have been exposed as fraudulent schemes worth approximately $1 billion.

According to the US Attorney’s Office, Miles Guo and Kin Ming Je, both Chinese businessmen, deceived thousands of individuals from multiple countries into investing in the fictitious online club G|CLUBS.

The duo used the $262 million they collected to purchase a lavish mansion in New Jersey and other luxury items.

Moreover, Guo and Je are implicated in establishing the Himalayan Exchange, a bogus cryptocurrency system that allegedly operates its own H-Coin stablecoin and Himalaya token.

The US Securities and Exchange Commission (SEC) has also filed charges against the scammers for raising over $850 million via “fraudulent offers” in the form of the Himalaya token and H-Coin stablecoin.

The SEC further claimed that the scammers misled potential investors of H-Coin by asserting that 20% of its value is backed by gold, and that they would compensate investors for any losses incurred.

Miles Guo was apprehended on March 15, while Kin Ming Je remains at large. The duo faces 11 counts that could land them in prison for several decades if convicted.

Recently, Egyptian authorities apprehended 29 individuals involved in distributing the Hoggpool mobile app, a cryptocurrency investment platform that caused over $600,000 in losses for 800,000 investors.