Ace Exchange Involved in Fraudulent Investments
Previously, “Crypto City” reported that Taiwan’s Ace Virtual Currency Exchange (ACE) has been accused of establishing “Alfred Wallet” and “A+CARD” prepaid cards, implementing fraudulent schemes disguised as investments through physical stores. The main suspects further deceived victims, numbering up to 1,200, by issuing worthless cryptocurrencies, with the total amount involved exceeding 2.2 billion New Taiwan Dollars.
Between January and February of this year, law enforcement conducted searches at Ace Exchange and Fuhai Digital Innovation Company, detaining Ace Exchange founder Pan Yichang and 10 others, including a man surnamed Hsu, the head of Fuhai Digital Innovation Company. In April of this year, the Taichung District Prosecutor’s Office indicted Pan and six others.
According to the investigation results from the Taichung District Prosecutor’s Office, the man surnamed Pan, along with his partners, collaborated with a fraudulent investment scheme by searching for victims through social media platforms like Facebook and LINE. They gained the victims’ trust by promising high returns and giving gifts, manipulating the public’s established impression that “physical equals legal” to lead victims to the “physical stores” operated under Fuhai Company.
Investigators also raided physical stores
Following investigations by the Telecommunications Investigation Brigade of the Criminal Investigation Bureau, as well as the criminal police teams in Taichung and Kaohsiung, large-scale raids were conducted from April to May this year, targeting four businesses: “UBC” in Taoyuan, “Xinfudai” in Kaohsiung, “Ha U” in New Taipei, and “Bibi Digital” across New Taipei, Taoyuan, and Hsinchu City, totaling six storefronts.
Ultimately, law enforcement detained 49-year-old Tu, the head of UBC, 36-year-old Zhang, the head of Xinfudai, along with their store manager and staff, totaling 13 individuals. However, the leaders of Ha U and Bibi Digital remain at large. The prosecutors applied for the detention of Tu, while Zhang and 12 others were released on bail ranging from 50,000 to 100,000 New Taiwan Dollars. The court set Tu’s bail at 200,000 New Taiwan Dollars.
Other implicated individuals were detained between June and December of last year, including Sun, the head of “Slowly Meal,” Wu, the head of “Mi Le,” Li, the head of “Golden Sphere,” and Zhuang, the head of “Ma Tuan Si,” totaling 16 individuals.
Regulatory authorities still need to make efforts
Taiwan’s Financial Supervisory Commission, the regulatory authority for cryptocurrencies and virtual assets, issued “VASP Guidelines” last year, requiring businesses to report in accordance with the guidelines and comply with anti-money laundering laws. Currently, 25 virtual currency businesses have completed compliance declarations. Crypto-related businesses, including the ACE Exchange at the center of the incident, applied to the government last December to establish an association to formulate self-regulatory norms.
Despite the government and relevant departments strengthening the regulation of the virtual currency market, the exchange that completed its anti-money laundering compliance declaration has been embroiled in scandals, indicating that the government still has a long way to go in regulating virtual currency trading platforms and related businesses.
“Crypto City” also reminds citizens that social fraud is rampant today, and many products certified by the government or endorsed by celebrities may not necessarily be legal. It is essential to exercise caution and conduct thorough research when encountering any information related to investments and finances to prevent financial losses.
This article is collaboratively republished from:
Crypto City
