US law enforcement officials have detained one of the founders of Himalaya Exchange and the fictitious G|CLUBS club, who is accused of fraud to the sum of $1 billion.
The U.S. Attorney's Office for the Southern District of New York stated that entrepreneurs Miles Guo and Qing Ming Jae deliberately lured citizens from different countries to finance a fake internet club called G|CLUBS. The two entrepreneurs then allegedly used the $262 million they received to purchase a luxury New Jersey mansion and other expensive items. It is also claimed that they were involved in the creation of Himalaya Exchange, a pseudo currency ecosystem with Himalaya tokens and H-Coin stablecoin.
The US Securities and Exchange Commission (SEC) has filed a lawsuit against those who tricked investors into buying unregistered and fraudulent securities worth more than $850 million through the Himalaya token and H-Coin stablecoin. The SEC said investors had been misled into believing that 20% of the value of the securities was backed by gold and any losses would be compensated.
On March 15, Miles Guo was detained and Kin Ming Jae is still wanted by the authorities. If convicted, these two individuals face years in prison in connection with the 11 charges against them.
