Ace Exchange Involved in Fraudulent Investment Scheme
Previously, “Crypto City” reported that Taiwan’s Ace Virtual Currency Exchange (ACE) is accused of establishing “Alfred Wallet” and “A+CARD” prepaid cards to carry out fraudulent investment schemes through physical stores. The main individuals involved are said to have defrauded up to 1,200 victims, with the total amount exceeding 2.2 billion New Taiwan Dollars by issuing worthless cryptocurrencies.
From January to February this year, law enforcement conducted searches at Ace Exchange and Fuhai Digital Innovation Company, detaining 11 individuals including Ace Exchange founder Pan Yizhang and the head of Fuhai Digital Innovation, a man with the surname Hsu. In April of this year, the Taichung District Prosecutor’s Office indicted Pan Yizhang and six others.
According to the investigative findings of the Taichung District Prosecutor’s Office, the man surnamed Pan and his partners collaborated with a fraudulent investment group, using social media platforms such as Facebook and LINE to find victims. They gained victims’ trust through promises of high returns and gifts, exploiting the public’s preconceived notion that “physical=legal” to lure victims to the “physical stores” operated by Fuhai Company for fraudulent activities.
Investigators Trace and Raid Physical Stores
The Criminal Investigation Bureau’s Telecommunications Investigation Team, along with the criminal investigation units of Taichung and Kaohsiung cities, conducted large-scale searches from April to May this year, targeting four businesses: “UBC” in Taoyuan, “Xinfudai” in Kaohsiung, “Ha U” in New Taipei, and “Bibi Digital” in New Taipei, Taoyuan, and Hsinchu, encompassing a total of six stores.
Ultimately, law enforcement detained 49-year-old Tu, the person in charge of UBC, 36-year-old Zhang, the head of Xinfudai, along with their store manager and staff, totaling 13 individuals. However, the heads of Ha U and Bibi Digital remain at large. The prosecution filed 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 individuals with related issues had already been detained between June and December of last year, including Sun, the head of “Slow Food”; Wu, the head of “Mi Le”; Li, the head of “Golden Sphere”; and Zhuang, the head of “Matruans,” totaling 16 individuals.
Regulatory Bodies Still Need to Work Hard
Taiwan’s Financial Supervisory Commission, the regulatory authority for cryptocurrency and virtual assets, issued “VASP Guidelines” last year, requiring businesses to comply with the guidelines and adhere to anti-money laundering laws. So far, 25 virtual currency operators have completed compliance statements. Among them is ACE Exchange, which applied to the government in December last year to establish an association to formulate self-regulatory standards.
Although the government and relevant departments have strengthened their regulation of the virtual currency market, exchanges that have completed anti-money laundering compliance statements have continued to face scandals, indicating that the government still has a long way to go in regulating virtual currency trading platforms and related operators.
“Crypto City” also reminds the public that scams are rampant in today’s society, and many products certified by the government or endorsed by celebrities may not be legal. It is essential to exercise caution and conduct thorough research, especially when dealing with any information related to investment or finances, to prevent financial losses.
This article is collaboratively reproduced from:
Crypto City