A single billionaire’s “Chapter 11” case shows how a determined bad actor can turn America’s courts into a playground—burying victims under junk claims while lawyers get paid and creditors get nothing.
Story Snapshot
- Miles Guo’s 2022 personal bankruptcy has dragged on for years with no distributions to creditors, despite major asset recoveries and ongoing liquidation efforts.
- Court filings describe a flood of more than 1,200 claims totaling roughly $18 billion—many characterized as nuisance or fraudulent—linked to Guo’s online following.
- A court-appointed trustee has faced doxxing, protests, and threats tied to the bankruptcy fight, turning a financial case into a security and intimidation problem.
- Roughly $77 million has been disbursed largely to professional fees across dozens of firms, eroding what could have gone to alleged fraud victims.
A Bankruptcy Case That Became a Stress Test for the Court
Miles Guo, a Chinese billionaire and self-styled anti-Communist activist living in the United States, filed for Chapter 11 personal bankruptcy in February 2022—days after a major court penalty involving his yacht, Lady May. A bankruptcy judge later described the matter as unusually complicated and contentious, appointing trustee Luc Despins to take control. The proceeding has since resembled a system stress test: sprawling assets, aggressive litigation, and years of delay.
Records described in reporting indicate the case spiraled beyond a normal debtor-creditor fight when Guo’s global followers began filing claims on a mass scale. The docket reportedly ballooned to more than 1,200 claims totaling around $18 billion, a figure that dwarfs traditional personal-bankruptcy precedents in disruption even if not in clean, verified debt. When courts must spend years sorting real creditors from noise, the legal system becomes less accessible for everyone else.
Trustee Oversight, Hidden Assets, and a Mounting Fee Tab
Trustee Luc Despins, associated with Paul Hastings, has spent years trying to locate, secure, and liquidate assets that include luxury properties and other high-value items tied to Guo. Reporting describes extensive use of shell companies and sprawling banking activity connected to Guo and associates, complicating recovery efforts. As of 2026, the trustee was still untangling more than 1,000 claims while pursuing sales, including a New Jersey estate reportedly listed around $19 million.
The most concrete financial takeaway so far is not creditor recovery but cost. About $77 million has been disbursed, with roughly $70 million described as fees across 24 firms, including a reported $47 million tied to Paul Hastings. For ordinary Americans who already suspect “the system” is built for insiders, the optics are brutal: victims wait, while professional costs consume the estate. That isn’t a partisan talking point; it’s a structural warning about incentives in prolonged litigation.
Intimidation Tactics and the Weaponization of Online Followers
The case also highlights a modern problem: online mobilization aimed at pressuring institutions. Reporting describes followers doxxing and picketing parties linked to the case in places like New York, London, and Tokyo, and a judge characterizing the activity as an intimidation campaign. Before his arrest, Guo allegedly encouraged a scorched-earth approach, including statements about letting legal fees pile up. That posture turns bankruptcy from a financial proceeding into a harassment engine—something courts were not designed to absorb.
Why This Case Stands Out Among “Big” Bankruptcies
Lists of historic bankruptcies often focus on raw debt totals or corporate collapses, but Guo’s case is presented as “worst” for a different reason: ongoing disruption. Earlier personal bankruptcies tied to wealthy figures—such as Clint Murchison Jr. or international tycoons—didn’t feature a coordinated flood of claims and alleged intimidation layered on top of asset concealment disputes. Corporate examples like Lehman Brothers can be larger by assets, but they are not comparable to a personal filing weaponized for delay.
"Worst personal bankruptcy ever — the yearslong hell that happens when a billionaire says he's worth $3,850" – Business Insider #SmartNews https://t.co/vSLpKqcC2z
— Regi Bonner (@regibonn) February 16, 2026
As of 2026, Guo remains jailed on federal fraud charges while the bankruptcy continues to grind forward with liquidation and litigation. The reporting does not provide a clear timeline for when legitimate creditors might see distributions, if any, because the claims review and asset tracing remain active. The conservative concern here is straightforward: when procedural rules can be exploited at scale, everyday citizens lose faith that the courts can deliver timely accountability—especially when money and influence amplify delay.
Sources:
How Billionaire Miles Guo Hijacked the Bankruptcy Court System
From $1.8 billion to broke: 9 of the biggest personal bankruptcy cases
Largest bankruptcies in the U.S. by assets
Biggest Bankruptcies in U.S. History
