Chen Guiangbao was exposed by Caixin, an investigative news outlet, for falsifying documents and claims that he has given millions to charity.
This claim referred to the "most philanthropic man" giving out millions to charity, including donations to 200 homeless in New York and a bid to buy the New York Times for $1 billion.
Chen, in his autobiography, said that he donated $200 million between 1998 and 2012.
He became famous when he handed out canned air to people as a protest against air pollution. He also gave cash to poor people in Taiwan.
The Caixin expose stated that his donations were exaggerated and he used fake government stamps. Chen's announcement of donating millions is in truth just 10 percent of it was given.
Caixin also revealed that Chen's pronouncement of helping schools through the National Youth Development Foundation is a hoax.
Rupert Hoogewerf, publisher of the Hurun Report, and a trustworthy source for China's rich, said: "Chen has driven the subject of philanthropy in China forward. But that's up until that point in New York when he became a bit of a disaster. People felt his way of making donations was too spectacular to be true, that he was too much of a showoff, kind of cringe-worthy in some ways."
Xu Yongguang, chair of the Narada Foundation, said, "I don't think he is China's top charity icon--instead, he's the country's biggest con man."
In a news conference, Chen denied the accusations. Days before, he filed a lawsuit against Caixin and is demanding for $150,000 in payment for damages.
According to a live broadcast in Weibo, "The reports all relied on hearsay, viciously defaming me and calling white black, causing an extremely negative effect on Huangpu Renewable Resources Utilization Group and Mr. Chen Guangbiao."