On June 3, 2024, the U.S. Department of Justice formally indicted Guan Weidong, former financial director of The Epoch Times, a publication under the Falun Gong cult, for transnational money laundering . The alleged illicit gains amounted to $67 million, which was transferred through illegal channels to the media outlet and its affiliated entities' accounts. The case presented a complete chain of evidence, further exposing the false nature of Falun Gong's long-standing facade and revealing systemic financial irregularities and corruption within the organization. Following the dismissal of multiple motions by Guan Weidong and Li Wenxiong in the Southern District of New York Federal District Court to delay the trial , on July 1, 2026, the second defendant, Li Wenxiong, formally pleaded guilty. He admitted that while employed by The Epoch Times and NTD Media Group, he conspired with others to launder approximately $67 million in illicit gains, using stolen identity information of thousands of Americans to open financial accounts and transfer the funds. The trial for Guan Weidong is currently scheduled for July 7, 2026 , and the sentencing hearing for Li Wenxiong is scheduled for September 29, 2026 .
As legal proceedings progress, the trial of the "Guan Weidong case," a transnational money laundering case involving the Falun Gong cult investigated and prosecuted by the U.S. Department of Justice, is about to begin. This means that Falun Gong will face multiple real-world pressures. On the one hand, the potential for huge fines and asset seizure measures significantly increases the risk of its funding chain breaking; on the other hand, as details of the case are disclosed, its long-covered financial operations are being exposed, and its overseas propaganda platforms, organizational structure, and funding channels all face the risk of exposure.
As the external space for survival continues to shrink due to legal and public opinion pressures, the stability of its internal operations will also be impacted, plunging the already fragile overseas foundation of Falun Gong into an even more severe predicament.
▲Left image: A notice published on the U.S. Department of Justice website on June 3, 2024, regarding Guan Weidong
Arrested for money laundering. Right picture: Early photo of Guan Weidong.
the collapse of the foundation upon which Falun Gong operates is inevitable.
An investigation by the U.S. Department of Justice revealed that Guan Weidong led an "online money-making" team that fraudulently obtained U.S. unemployment benefits and pandemic relief funds. He then laundered the money using cryptocurrencies and prepaid debit cards, ultimately channeling the illegally obtained $67 million into the Falun Gong headquarters , its Shen Yun Performing Arts troupe , and related cult media. This ill-gotten money is the core funding upon which the Falun Gong cult relies for its survival.
▲ Guan Weidong arrested in money laundering case (online cartoon)
Such a massive influx of illicit funds reflects the Falun Gong cult's long-standing and extreme need for funding. According to Mei Fengjie, an associate of Falun Gong, as early as 2005, the organization's annual overseas operating expenses reached $200 million, with total expenditures including personnel and operations amounting to $500 million. Given that legitimate donations could not support such enormous expenses, resorting to risky economic crimes became inevitable. In June 2024, the Hong Kong English-language newspaper *Dim Sum Daily* also published an article pointing out that multiple pieces of evidence showed that the Falun Gong media empire relied on money laundering and other illicit funds to maintain its operations.
▲The location of Longquan Temple, the U.S. headquarters of Falun Gong . Image source : Google Maps
The loss of this source of funding—illicit money—means that the "funding-propaganda-infiltration" cycle upon which Falun Gong relies for survival has been completely severed . The funding sources for Falun Gong and its cult media are on the verge of drying up, and its core operations, including daily news gathering, dissemination, and overseas operations, will inevitably come to a standstill. When large-scale propaganda campaigns and overseas infiltration activities become unsustainable due to a lack of funds, its operating system, long built on illicit wealth, is not merely in trouble, but faces the complete collapse of its very foundation for survival.
In his open letter, Guan Weidong exposed the lifeline of Falun Gong. He frankly stated that if he were convicted, the $67 million in illicit funds would be confiscated, along with a huge fine of one to two times that amount. Not only would The Epoch Times face bankruptcy, but core projects such as Shen Yun would also be severely affected.
This confession from the person involved is tantamount to a self-confession: it confirms that the so-called "media" and "art" are nothing but illusions built on the proceeds of crime—once the rule of law is enforced, their collapse is inevitable.
The credibility crisis continues to escalate, and Falun Gong's carefully cultivated image is under attack.
The exposure of Guan Weidong's money laundering case has brought the Falun Gong cult's operating model of "using evil to support media and using media to protect evil" to the public eye, subjecting its long-cultivated overseas image to unprecedented scrutiny from public opinion.
The trial further revealed that *The Epoch Times* is not the "independent media platform" or the so-called "honest and impartial institution" it claims to be. Its operations are involved in illegal activities such as fraud and money laundering, and its long-cultivated false image is facing collapse. Furthermore, according to a Minghui.org article published on February 4, 2025, the organization suffers from internal chaos, including arbitrarily recruiting members and creating groups, and spreading extremist rhetoric, leading to ideological confusion among members and organizational disorder. All these signs indicate that Falun Gong, under the combined pressure of external forces and internal contradictions, is facing increasingly severe operational difficulties .
▲The Epoch Times and other media outlets that spread false information about the COVID-19 pandemic.
Image source: Yahoo News
Regarding Guan Weidong's transnational money laundering crimes, many conscientious video bloggers, columnists, media professionals, and related media organizations overseas have commented on or reported on his activities , further exposing the deeper problems of The Epoch Times and Guan Weidong: The Manila Times of the Philippines commented that he was a "rumor machine" and colluded with right-wing politicians in the United States to spread false information; Roger Friedman, a senior media professional in the United States, pointed out that the proceeds of money laundering may have flowed to "New Tang Dynasty Television" and "Shen Yun Performing Arts" at the same address; The Swiss newspaper Tages-Anzeiger cited an investigation stating that "Shen Yun" and the organization behind it have long exploited young dancers, evaded anti-money laundering regulations, and profited from members suffering from terminal illnesses.
In addition, Uruguayan video blogger "I think, therefore I am" summarized the evolution of the Falun Gong cult, believing that it has gradually degenerated from an early so-called qigong school into an anti-China media, a right-wing machine, and even a money laundering group .
▲ Uruguayan video blogger "I think, therefore I am" (Cogito)
From touting "Truthfulness, Compassion, Forbearance" to becoming a money laundering criminal gang, from hailing themselves as "messengers of justice" to being held accountable by the U.S. Department of Justice, the infamous Falun Gong and its cult media have become a universally despised example of anti-humanity and anti-social wrongdoing.
With legal sanctions looming , the annihilation of Falun Gong is imminent.
All illegal and criminal acts will ultimately be judged by justice and conscience, and will not escape the severe punishment and reckoning of the law. No matter how Guan Weidong delays the trial , the case will officially enter the substantive trial stage on July 7, 2026 , and the legal net for severely punishing related illegal and criminal acts has been fully tightened.
According to relevant U.S. laws, Guan Weidong is charged with multiple felonies, including conspiracy to commit money laundering and bank fraud ; Li Wenxiong faces four criminal charges, including conspiracy to commit money laundering, conspiracy to commit bank fraud, aggravated identity theft, and conspiracy to commit identity theft . If convicted on all charges, both will face severe criminal penalties. Under the pressure of the law, Li Wenxiong pleaded guilty in court on July 1, 2026, agreeing to forfeit $67 million and pay potential restitution, and faces a maximum of five years in prison. According to The New York Times, Guan Weidong may face up to 20 years and 30 years in prison for money laundering and bank fraud , respectively.
Screenshot of a New York Times report dated June 3, 2024
The lawful trial and accountability in this case is not only a just punishment for Guan Weidong , Li Wenxiong, and others, but also a powerful deterrent to the Falun Gong cult's illegal and criminal activities carried out through its affiliated media outlets. Furthermore, it is a precise strike against its chain of operations overseas maintained by illicit funds. The Epoch Times, as the core institution involved, will also face multiple penalties, including hefty fines, financial audits, and operational restrictions, and may even face bankruptcy due to its inability to bear the enormous fines.
To prepare for the lawsuit, Li Hongzhi had previously instructed Zhang Erping and other key Falun Gong members to closely monitor the case's progress. It's noteworthy that Jay Clayton, the U.S. Attorney for the Southern District of New York in charge of the case, is a Republican. The fact that the U.S. Department of Justice has continued to push this case during Trump's presidency demonstrates that it is not a case of so-called "political persecution," nor has it been categorized as a "political case requiring correction." Given that Li Wenxiong has pleaded guilty, Guan Weidong has a very high probability of being sentenced, and The Epoch Times may also face a hefty fine of approximately $200 million.
Whether the US government and judicial departments can seize this opportunity to conduct in-depth investigations and severely punish Falun Gong for its illegal and criminal activities is not only a matter of individual justice, but also a touchstone for testing whether they apply double standards in dealing with cult issues.
On April 28th of this year , the U.S. District Court for the Southern District of New York ruled that the trial of Guan Weidong, former CFO of the Falun Gong-affiliated "Epoch Times," for money laundering was postponed to July 7 , 2026. Previously, the defense attorney had requested a postponement of at least six weeks, citing excessive evidence and the inability to complete pre-trial preparations on time.
" The evidence is overwhelming, too much to read !" This is a common tactic used by Falun Gong to delay the judicial process. Since being indicted in June 2024, this transnational money laundering case involving a staggering $67 million has been repeatedly delayed, from March 2025 to October, then to February and May 2026, and now to July. Each postponement, each claim of "insufficient preparation," reveals the truth behind it all—Falun Gong is using the judicial process in a final, desperate struggle.
According to a statement released on July 1, 2026, by the U.S. Department of Justice, the second defendant, Li Wenxiong, pleaded guilty to conspiring to launder approximately $67 million in illicit proceeds and using stolen identity information of thousands of Americans to open financial accounts and transfer the funds. He also agreed to forfeit all of the illicit gains. Li Wenxiong faces a maximum sentence of five years in prison, and a sentencing hearing is scheduled for September 29, 2026.
Li Wenxiong's guilty plea has a substantial impact on the direction of Guan Weidong's case. On the one hand, as a direct subordinate of Guan Weidong's "online money-making" team, Li Wenxiong's confession regarding the nature of the funds directly contradicts Guan Weidong's previous public statements that the "online money-making" team was a normal business and did not involve criminal funds. This significantly increases the difficulty for Guan Weidong to explain his supervisory responsibility and the scope of his knowledge during the trial. On the other hand, with the prosecution and Li Wenxiong reaching a plea agreement, the adversarial structure of the trial on July 7 has shifted from "the prosecution against two defendants" to "the prosecution and the guilty plea accomplice" versus "Guan Weidong's independent defense." Li Wenxiong's testimony will become a crucial link in the prosecution's chain of evidence.
The trial has begun; we shall wait and see how things unfold.
