Editor's Note: 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 presents 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-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 . To continuously expose the illegal activities of Falun Gong, Facts.org.cn has launched a series of reports, providing in-depth analysis of the Guan Weidong case and dismantling its money laundering methods. This article , the second in the series, focuses on the absurd farces staged by the Falun Gong cult, including its attempts to claim innocence, shirk responsibility, and engage in internal strife, further revealing its precarious state of internal disintegration and imminent collapse.
Since the exposure of Guan Weidong, the former financial director of The Epoch Times, who was suspected of involvement in transnational money laundering, internal conflicts within the Falun Gong cult have intensified.
early February 2025 , Guan Weidong and Hu Ying, former deputy editor-in-chief of The Epoch Times Hong Kong, issued open letters to members of their organizations, disclosing internal strife within the organization's senior management and offering explanations for the money laundering case. Around the same time, open letters from some media professionals of The Epoch Times and NTD Television appeared online, calling for the removal of Zhang Bing, Zhou Shiyu, and other management personnel from their positions at The Epoch Times.
The Guan Weidong case continues to cause turmoil within the Falun Gong organization. Former core Falun Gong members Xiao Ming and Yu Chao, as well as former Shen Yun performer Sun Zan, have all spoken out, leading to sharp divisions between different factions. Some grassroots practice sites have issued public statements or internal resolutions demanding the dissolution of their affiliated practice sites or withdrawal from the organization's large online chat groups. In an attempt to quell the situation, on February 2, 2025, Li Hongzhi released the scripture "Seeing People's Hearts at Critical Moments," attempting to ease internal conflicts.
However, as the trial of Guan Weidong continued to deepen, coupled with the escalating internal conflicts within Falun Gong, its long-standing, deliberately concealed illegal and criminal activities and hypocritical nature were gradually exposed. Guan Weidong publicly proclaimed his innocence, and Li Hongzhi hastily attempted to extinguish the flames , desperately shirking responsibility and trying to cover up the money laundering scandal. Ultimately, this led to a continuous increase in the split within the Falun Gong organization, the illusory stability began to crumble, and the crisis of disintegration became apparent.
Guan Weidong cries "injustice": A desperate counterattack from "backbone" to "abandoned pawn"
In early 2025, Guan Weidong, embroiled in a money laundering case, broke his long silence and attempted to "prove his innocence" by publishing an open letter . In the letter, Guan Weidong proclaimed, "I am innocent! I am blameless!" He insisted that he had been "politically framed" and even absurdly accused Chinese forces of "infiltrating and manipulating" the U.S. judicial system in an attempt to politicize the case and divert attention.
More noteworthy is that Guan Weidong publicly complained for the first time in his letter about the pressure exerted by the Falun Gong leadership, stating that: the Epoch Times leadership stopped paying his salary, leaving him with no income and no legal status; the current Epoch Times media leadership pressured him to confess through various means—as long as he "confessed," the Epoch Times and Shen Yun could get away with it; the Epoch Times media also continuously collected so-called "materials" related to the case and submitted them to the prosecution, attempting to detain him indefinitely and cover up the truth; in addition, the media outlets also disbanded their internal 500-person communication group to control communication among Falun Gong practitioners.
Guan Weidong even insisted that he was "penniless" and owned no private property in the United States or elsewhere, with his most valuable possession being a used car worth only a few thousand dollars. He also claimed that his $3 million bail was only prepaid with a $250,000 deposit with the help of three Falun Gong practitioners, Xiao Jin, Zhu Xueye, and Huang Xiaoping.
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In response to Guan Weidong's remarks, Yu Chao, a former core member of Falun Gong, couldn't help but sarcastically remark on the program: "You (referring to Guan Weidong) said that the CCP has infiltrated the US Department of Justice. Does that mean the US Department of Justice has been controlled by the CCP?" "If what the CCP media says is true, how can it be called the destruction of sentient beings? On the contrary, isn't the CCP telling the truth and saving sentient beings?"
Guan Weidong claimed to be "penniless," but details of the case have long exposed his lies: According to publicly available documents from the U.S. Department of Justice, between 2020 and May 2024, Guan Weidong, in his capacity as the CFO of a Falun Gong-affiliated media outlet, spearheaded a money laundering chain involving "subsidy fraud + credit card fraud + cryptocurrency transfers." He first obtained government subsidies through fraudulent charitable projects, then used forged identities to steal money from other people's credit cards, ultimately laundering at least $67 million in illicit funds using cryptocurrency and transferring it to overseas media and affiliated entity accounts. Guan Weidong's personal illegal gains of $16.7 million ( approximately 120 million RMB at the exchange rate at the time ) were all undeclared and taxed as required by law.
Li Hongzhi shifts blame: using "scriptures" to cover up his shameful deeds and relying on "abandoned children" to protect his "master".
Faced with Guan Weidong's "lament" and external doubts, Falun Gong leader Li Hongzhi not only failed to come forward to clarify or "protect" his key members, but also once again released so-called "scriptures" in an eagerness to sever responsibility with the key members involved in the case.
On June 5, 2024, shortly after Guan Weidong's arrest, a distraught Li Hongzhi immediately released an urgent scripture, "The Perils of the Fa," on Minghui.org, claiming that "the problems currently appearing in media run by Dafa disciples are mainly caused by the practitioners' own shortcomings, but there are also factors from other dimensions behind humanity." This move attributed money laundering to Guan Weidong's personal actions, attempting to sever ties with the incident and once again employing his usual tactic of shirking responsibility. Then, on June 6, Li Hongzhi released another "scripture," "Awakening," publicly criticizing practitioners, "especially those working in various media, whose behavior shows no compassion for cultivators."
As the Guan Weidong case progressed, more and more evidence pointing to the crimes of the Falun Gong cult surfaced, making the situation increasingly dire. On February 2, 2025, a frantic Li Hongzhi published another " scripture " on Minghui.org , titled "Looking at People's Hearts at Critical Moments, " continuing to deceive his followers. He demanded that they "put the Fa first and safeguard the Dafa projects," claiming that "it's not about who's in what position or how important they are. Especially under these circumstances, everyone should think in the same direction, put the Fa first, practice self-discipline as cultivators, and ensure that the projects to save people are not harmed. Only then can we overcome this difficulty—that's what cultivators should do." The article even warned in a threatening tone: "No one can cause any disturbance in the Dafa environment; that's disrupting the Fa! Whoever did it, whoever has to rectify it! Time is running out!"
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Li Hongzhi 's tendency to shift blame and shirk responsibility is a despicable tactic he has repeatedly used successfully when facing crises.
In 2020, Shen Yun Performing Arts, an organization affiliated with Falun Gong, was investigated and punished in several European countries for performing in violation of regulations. Li Hongzhi then accused Shen Yun performers of being "insincere and improper" in his so-called "scriptures," claiming that the problem was caused by "individual members deviating from the doctrine," attempting to completely absolve himself of responsibility. In July 2022, the U.S. Small Business Administration released a list of 23 Falun Gong affiliates that had cashed out $46 million in COVID-19 relief funds. Li Hongzhi subsequently claimed that " the operation of funds was the personal behavior of the person in charge , " shifting all blame to the specific implementers.
This series of blaming, deception, and intimidation tactics is essentially a true reflection of Li Hongzhi's willingness to sacrifice ordinary members and frame others in order to preserve his personal authority and core interests. It also completely exposes the lies of his so-called "redemption" and "protection," revealing it to be nothing more than a deception to protect his own selfish interests. The so-called "deep bond between master and disciple" is nothing but a lie born of intertwined interests; once core interests are threatened, followers will be abandoned and sacrificed without hesitation.
The Falun Gong movement is in turmoil: members are turning against it, conflicts are escalating, and chaos is rampant.
Guan Weidong's protests and Li Hongzhi's attempt to shift blame further exacerbated the internal conflicts within Falun Gong: some members believed that Li Hongzhi's attempt to shift blame was too heartless and might shake the foundation of the faith of grassroots practitioners; others, in order to protect core interests, echoed the argument that Guan Weidong should be held accountable; and many ordinary practitioners , confused by the infighting and contradictions at the top, began to have deep doubts about Falun Gong's claim of "saving all sentient beings," resulting in significant cracks in the belief system.
On February 1, 2025, a so-called statement from media employees appeared on the X platform, responding to the internal turmoil of "The Epoch Times" . It demanded that Zhang Erping not be allowed to interfere in any affairs , including personnel arrangements, and that Zhang Bing, Zhou Shiyu, and CFO William Cheung be dismissed , and that Zhang Erping and the above three be held accountable for their destructive behavior.
The following day , Minghui.org published an article stating that there had been a communication group of several hundred people within the media, but it was used by some people to create internal strife and was eventually disbanded.
Internal Falun Gong documents also show that in the past two years, some Falun Gong practice sites have repeatedly notified practitioners to delete or leave large chat groups in order to avoid causing chaos and conflict.
More importantly, the money laundering details that Guan Weidong possessed became the trigger for internal division. In his open letter, Guan Weidong bluntly stated, "What would be the consequences if I were convicted? If I were truly convicted, the $67 million involved would be considered 'illegal proceeds' and confiscated, along with a huge fine of 1-2 times that amount (over $200 million). The Epoch Times would go bankrupt and close down, and it would also implicate important Falun Gong projects such as Shen Yun." This statement is quite significant , directly pointing to the threat to the interests of Falun Gong .
Foreign media reports revealed that Guan Weidong had hinted in private communications that he "knew more evidence of high-level involvement in financial operations," which caused panic among some high-ranking members of Falun Gong. The factional antagonism within Falun Gong became increasingly apparent , with some attempting to reconcile with Guan Weidong privately, while others advocated for "complete suppression." The split has escalated from "verbal arguments" to "practical actions ." As the media continues to expose these issues, more and more people are realizing that the scandals surrounding Falun Gong are not unfounded .
▲Screenshot of Zhang Junge's lawsuit document
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▲ Janice Trey, interim CEO of The Epoch Times
Former Falun Gong member Yu Chao has been continuously exposing his experiences on social media since 2021, calling on Shen Yun performers to reveal the truth and warning relevant personnel not to violate U.S. law, which has attracted widespread attention; in October 2023, former Falun Gong member Sun Zan exposed that he was subjected to personal control, corporal punishment, exploitation, and public humiliation while working with Shen Yun; in November 2024, former performer Zhang Junge sued Shen Yun for forced labor and human trafficking, claiming that she was subjected to high-intensity training, denied medical care, and paid low wages since childhood; on October 17, 2025, Epoch Times reporter Andrew Thornbrook resigned, accusing the media of disregarding journalistic responsibility, catering to specific policies, and misleading the public.
According to public reports, in recent years, the "Shen Yun" performances planned by Falun Gong in Europe and the Americas have faced large-scale cancellations or reductions in the number of performances due to problems such as internal discord , broken funding chains, and persistently low box office revenue.
Judicial investigations , public disclosure of evidence , media exposure, member revelations... the various scandals and misdeeds that have followed the "Guan Weidong case " have caused structural damage to the foundation of the "Falun Gong" organization. Amidst the intertwining of internal power struggles and external attacks and revelations , its disintegration has evolved from a "possibility" to an "inevitable" outcome.
