The Epoch Times, a media company known for its right-wing stance, has become the focus of public opinion recently. Chief Financial Officer Guan Weidong (transliteration, also known as Bill Guan) was arrested on suspicion of money laundering and bank fraud. Coincidentally, he was arrested on 6/6 US time 2 were arrested, and news came out on 6/3, which happened to be the sensitive 6/4 in Asia.
Top executives of anti-communist media The Epoch Times charged with money laundering
The U.S. government has charged Kwan with one count of money laundering and two counts of bank fraud, alleging that he laundered at least $67 million through company accounts. The Justice Department said the money helped The Epoch Times' revenue surge nearly 400% in one year. Guan Weidong was arrested on Monday and pleaded not guilty to the charges in court.
Four years of money laundering in cryptocurrencies
Prosecutors allege that between 2020 and 2024, Guan Weidong ran a "vast multinational scheme" to purchase prepaid debit cards at discounted prices through cryptocurrency and deposit the funds on the cards into personal and business accounts. , some of these funds came from fraudulent unemployment insurance benefits.
U.S. government stresses determination to enforce laws
The U.S. Attorney for the Southern District of New York said the charges demonstrate the government's determination to combat money laundering and protect the integrity of the financial system. Guan Weidong, 61, is currently in custody and faces $3 million bail, including a $250,000 bond.
The Epoch Times’s response
The Epoch Times said in a statement that the company "has always taken integrity as its guiding principle" and would fully cooperate with the investigation into Guan Weidong. Currently, Guan Weidong has been suspended from his duties pending the results of the investigation. The Justice Department emphasized that the charges were not related to The Epoch Times’ journalism activities and did not name other employees.
Media company background
The Epoch Times is affiliated with Falun Gong, a spiritual group banned in China, and in its early years was primarily critical of the Chinese Communist Party. In recent years, the media has become an important supporter of the American right, especially Trump. It has also become a major propagator of right-wing conspiracy theories, especially on social media such as Facebook.
Abnormal financial growth of the company
The Epoch Times’ revenue rose 373% to $71 million in 2020 from $15 million the year before, according to federal tax filings. In 2021, its revenue jumped again to $121 million. Kwan and company representatives attributed these increases to increased paid circulation and donations from supporters.
Those involved said their income came from donations
Prosecutors said that when banks and cryptocurrency trading platforms inquired about a large number of suspicious transactions in The Epoch Times's account, Guan Weidong denied any irregularities. He even told the bank that the deposits came from "increased donations from supporters." He also deposited $16.7 million into a personal account but failed to report it on his tax filings.
The political influence of The Epoch Times
The Epoch Times has become increasingly influential in American politics, especially on the right. The company is investing in 2024 election coverage and running massive ads across the country. Republican senators from Wisconsin and Republican representatives from South Carolina have publicly praised the newspaper.
This article Cryptocurrency laundered 67 million mg of money, and 64 senior executives of the anti-communist media "Epoch Times" were arrested on the eve of the incident. First appeared on Chain News ABMedia.