Media as a platform for cryptocurrency fraud? What’s really going on?
Earlier this year, “ACE Ace Exchange,” once ranked among the top three cryptocurrency exchanges in the country, saw its founder, Pan Yizhang, and former president Wang Chenhuan, accused of collusion with a fraud ring. The Taipei District Prosecutors Office concluded its investigation in April, seeking over 20 years in prison for the main suspects and more than 12 years for lawyer Wang Chenhuan, implicated in the fraud ring.
This case has sparked widespread public concern and highlighted the severity of cryptocurrency scams once again.
During a meeting convened by the Education and Culture Committee on the 3rd, legislator Huang Guochang questioned Minister of Culture Li Yuanshi regarding the ACE Ace Exchange fraud case. He pointed out that Central News Agency (CNA) appears to have been ensnared in the criminal chain of the fraud group.
Huang pointed out that prosecutors discovered during their investigation that one of the main suspects, Xie Shiyin (daughter of the manager of the Lianchi Temple money laundering point for the fraud group), used illicit gains to establish a shell company named “Yi Zuan Co., Ltd.” The company is registered at the same address as SET TV, and Yi Zuan holds a 40% stake in “Create Intelligence Technology Co., Ltd.,” a subsidiary of SET. This revelation has shocked and raised questions across various sectors, casting doubt on their roles in the entire case.
Furthermore, Huang noted that senior media figures Jiang Jianliang and Li Yannan, associated with the SET group and indicted by the Northern District Prosecutors Office, knowingly deceived victims into purchasing cryptocurrencies with no actual value. They falsely claimed these could be traded on the supposedly art trading platform Chaebol and used as collateral for loans. In reality, CHAEBOL itself is part of the fraud group.
In addition, the fraud group also set up a fake media company, “Minsheng Technology Media,” to promote NFTs and the CHAEBOL platform. Although news articles bear the byline of journalists, these individuals do not exist, and the actual content is crafted by the fraud group.
Central News Agency: A platform for fraud? The Ministry of Culture vows thorough investigation
Create Intelligence, wholly owned by SET since its establishment in 2022, has been dubbed an “internal startup.” In March of last year, Create Intelligence announced a collaboration with the SET group to release 3,000 “Wan Island Paradise” NFTs. At a press conference, they claimed that holders would have more opportunities to participate in SET group entertainment projects, creating Taiwan’s first-ever media and entertainment pass, widely publicized.
At that time, Central News Agency also published a report that mentioned, “Create Intelligence collaborates with NFT platform CHAEBOL, allowing users to pledge NFTs on CHAEBOL platform to avoid liquidity risks and help users preserve value.” This statement mirrors exactly the news content disseminated by the fraud’s fake media company. Huang criticized, “How can Central News Agency endorse such news and promote fraud?”
Huang also pointed out that such false news releases have become part of the prosecution’s evidence of crime.
In response, Minister of Culture Li Yuanshi stated that if this matter involves Central News Agency, the Ministry of Culture will investigate and clarify the facts within a week. Li emphasized that media reporting’s fairness and truthfulness are crucial, and the Ministry will not tolerate any form of media assisting fraudulent activities.
What does the SET group say?
On the evening of the 3rd, the SET group issued a statement emphasizing that neither the SET group nor “Create Intelligence” has any knowledge or involvement in these matters.
Regarding Yi Zuan Company’s investment by Create Intelligence, Create Intelligence clarified that Yi Zuan is merely an external investment project and Create Intelligence was not involved in Yi Zuan’s actual operations, ending their cooperation at the end of last year.