The Chief Financial Officer (CFO) of Epoch Times, John Tang, has been accused of orchestrating a $67 million fraud scheme that used the company’s proprietary platform to embezzle funds and invest them in crypto.
The accusations, presented by the Securities and Exchange Commission (SEC) of the United States, claim that Tang used his position to manipulate the company’s accounting records and hide his fraudulent activities.
Crypto fraud: the investigations of the SEC for the CFO of Epoch Times
According to the SEC, Tang started the scheme in 2020, creating fake corporate accounts and using them to transfer funds from the coffers of the Epoch Times to a cryptocurrency exchange.
Subsequently, he would have purchased criptovalute with these funds, often at discounted rates up to 80% off their market value, using an unspecified crypto as a means of exchange.
The accusations state that Tang used the proceeds from his fraudulent activities for personal use, including the purchase of a luxury house and luxury cars. He also allegedly used the funds to subsidize the operations of Epoch Times, a conservative media outlet known for its criticism of the Chinese government.
The Epoch Times has denied the accusations, calling them “unfounded and defamatory.” The company stated that Tang resigned from his position in March 2024 and that it is cooperating with the authorities.
The fraud scheme of Tang is just the latest in a series of financial scandals that have hit the crypto sector in recent years.
These scandals have raised doubts about the legitimacy and security of cryptocurrencies and have led to increased calls for regulation by governments around the world.
The additional details on the fraud scheme
- Tang would have used various fictitious companies to hide his fraudulent activities.
- He would have falsified the company documents to mask the transfer of funds.
- Using his position to approve fraudulent transactions.
- In conclusion, he would have convinced investors to invest in the Epoch Times platform by making false promises of high returns.
The accusations against Tang are serious and, if found guilty, he could face a significant prison sentence. This case is a reminder of the risks associated with investing in cryptocurrency and it is important to do your own research before investing in any cryptocurrency.
In addition to the SEC accusations, Tang is also under a criminal investigation by the Federal Bureau of Investigation (FBI). If convicted of criminal offenses, he could face additional penalties, including fines or imprisonment.
Conclusions
The 67 million dollar fraud scheme orchestrated by the CFO of Epoch Times, John Tang, is a striking example of the corruption and deceit that can occur in the cryptocurrency sector.
The accusations against Tang highlight the need for greater regulation and oversight of the sector, in order to protect investors from the risks associated with these cryptocurrencies.
The case of Tang is a warning for all those who are considering investing in crypto. It is important to do your own research and understand the risks involved before investing any amount of money. Additionally, it is crucial to invest only in cryptocurrencies on reliable and regulated platforms.
The fraud scheme of Tang had a significant impact on Epoch Times, damaging the reputation of the company and putting its future at risk. This case is a sad reminder of the negative consequences that can result from fraudulent activities.
It is important that the cryptocurrency sector takes measures to address issues of corruption and deceit.
Only through greater transparency, accountability, and regulation can the sector gain the trust of investors and reach its full potential.