There’s an old name in this circle that was sentenced to 30 years today. Guo Wengui, the exiled businessman with close ties to Steve Bannon, was finally sentenced after being convicted in 2024 for a roughly $1 billion fraud scheme promoting the H-Coin scam.

There’s not much to elaborate on in this news itself—the man has been convicted, and the facts are clear. Instead, I want to use this verdict to help you recognize the common features of such scams, so the next "Guo Wengui" won’t catch you off guard.

The first common trait is the celebrity halo. These schemes often have a high-profile figure with built-in traffic and connections to political and business elites as their front man. Fame and connections are used as credit endorsement, making you think, "Someone this big wouldn't lie to me." But fame never equals trustworthiness. How famous someone is and whether they will take your money are two different things.

The second common trait is a grand narrative packaged as "revolution," "faith," or "changing the world." They rarely start by talking about returns. Instead, they give you a sweeping, inspiring reason to get you pumped up, framing buying the coin as a meaningful mission. Once you believe the story, handing over your money becomes natural.

The third common trait, and the one that eventually gives it away, is the lack of transparency in where the money goes. Where the raised funds actually went, and whether they were used for what was promised, is often a complete mystery. The story only collapses when the accounts don’t add up and you can’t withdraw your money.

If you see a project with all three of these elements combined, you can almost close your eyes and raise your alert: a powerful and famous person telling a grand story that doesn’t talk about money, raising funds with unclear destinations.

I’m not saying every project involving a celebrity is a scam, nor am I telling you to dismiss all idealism outright. I just want you to remember these characteristics. Guo Wengui’s 30-year sentence is the end of this story. But the next similar story might be just starting in some chat group.