Ace Exchange Involved in Fraudulent Investments
Previously reported by “Crypto City,” Taiwan’s Ace Virtual Currency Exchange (ACE) has been accused of establishing “Alfred Wallet” and “A+CARD” prepaid cards to perpetrate fraudulent investments through physical stores, with key suspects further deceiving victims through the issuance of air tokens. This scheme has defrauded up to 1,200 victims, involving an amount exceeding 2.2 billion New Taiwan dollars.
In January and February of this year, prosecutors and police conducted searches at Ace Exchange and Fuhai Digital Innovation Company, detaining ACE founder Pan Yizhang and 10 others, including a man surnamed Hsu, the head of Fuhai Digital Innovation Company. In April, the Taichung District Prosecutor’s Office indicted Pan Yizhang and six others.
According to the investigation results by the Taichung District Prosecutor’s Office, a 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 high returns and gifts, and exploited the public’s preconceived notion that “physical equals legitimate” to lure victims to the “physical stores” operated by Fuhai Company.
Prosecutors Track Down Physical Stores
After investigations by the Criminal Investigation Bureau’s Telecommunications Investigation Team and the criminal police units in Taichung and Kaohsiung, large-scale searches 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” in New Taipei, Taoyuan, and Hsinchu City, totaling six stores.
Ultimately, police detained 49-year-old Tu, the head of UBC, 36-year-old Zhang, the head of Xinfudai, along with the store manager and employees, totaling 13 individuals. However, the heads of Ha U and Bibi Digital remain at large. The prosecution made a request for detention for Tu, while Zhang and 12 others were released on bail ranging from 50,000 to 100,000 NT dollars. The court set Tu’s bail at 200,000 NT dollars.
Other related individuals with issues had been detained between June and December last year, including Sun, the head of “Slow Food,” Wu, the head of “Mile,” Li, the head of “Golden Sphere,” and Zhuang, the head of “Matruans,” totaling 16 individuals.
Regulatory Bodies Still Need Efforts
Taiwan’s Financial Supervisory Commission, the regulatory authority for cryptocurrencies and virtual assets, issued “VASP Guidelines” last year, requiring operators to report and comply with anti-money laundering laws. Currently, 25 virtual currency operators have completed compliance declarations, including ACE Exchange and other cryptocurrency-related operators, which applied to the government last December for the establishment of an association to formulate self-regulatory standards.
Despite the government and relevant departments strengthening regulations on the virtual currency market, incidents of exchanges completing anti-money laundering compliance declarations continue to emerge, indicating that the government still has a long way to go in regulating virtual currency trading platforms and related operators.
“Crypto City” also reminds citizens that social fraud is rampant today, 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 when dealing with any information related to investments and finances to prevent financial losses.
This article is collaboratively reprinted from:
Crypto City