Cryptocurrency Scams: Media Platforms Under Scrutiny for Propaganda?
The ACE Exchange, once among the top three cryptocurrency exchanges in the country, has been embroiled in controversy since the beginning of the year. Its founder, Yi-Chang Pan, and former president, Chen-Huan Wang, have been implicated in collusion with a fraud syndicate. In April, the Taipei District Prosecutors Office concluded its investigation, seeking sentences of over 20 years for the four main suspects and a minimum of 12 years for the lawyer Chen-Huan Wang, who is suspected of collusion.
This case has garnered significant public attention, highlighting the severity of cryptocurrency scams.
During a meeting held by the Education and Culture Committee yesterday, legislator Kuo-Chang Huang questioned the Minister of Culture, Yuan Li, regarding the ACE Exchange fraud case. Huang raised concerns about the Central News Agency’s potential role in the criminal network.
Huang revealed that during the investigation, prosecutors discovered one of the fraud ring’s key figures, Shi-Ying Xie (daughter of the manager of the money-laundering hub Lianchi Monastery), had established a shell company, Yi-Zhuan Co., Ltd. This company’s registered address is in the same building as the Sanlih Television Station, and it holds a 40% stake in Sanlih’s subsidiary, Create Smart Technology Co., Ltd., raising alarms and questions about its involvement in the case.
Huang pointed out that senior media figures associated with the Sanlih Group, Jian-Liang Jiang and Yan-Nan Li, were indicted for deceiving victims into purchasing worthless cryptocurrencies, falsely claiming they held transactional value and could be exchanged or used for loans on the so-called art trading platform Chaebol, which is, in fact, part of the fraud network.
Furthermore, the fraud syndicate established a fake media company, “Minsheng Technology Media,” to promote NFTs and the CHAEBOL platform. Although articles were attributed to journalists, these individuals did not exist, and the content was written by the fraud group.
Central News Agency as a Propaganda Platform for Fraud? Ministry of Culture Vows Thorough Investigation
Create Smart was established in 2022, fully owned by Sanlih, and touted as an “internal startup.” In March last year, Create Smart announced a collaboration with the Sanlih Group to issue 3,000 Bay Island Paradise NFTs, claiming that holders would have increased opportunities to participate in Sanlih’s entertainment projects, creating Taiwan’s first-ever film and entertainment pass, which was widely publicized.
At that time, the Central News Agency published a report stating, “Create Smart’s collaboration with the NFT platform CHAEBOL allows users to pledge NFTs on the CHAEBOL platform, avoiding liquidity risks and preserving value.”
This statement, identical to the fake media company’s news content, led Huang to criticize harshly: “How can the Central News Agency endorse and promote fraud using its reputation?”
Huang also noted that such fake press releases have become part of the fraud, as mentioned in the prosecutor’s indictment.
In response, Minister of Culture Yuan Li stated that if the Central News Agency, managed by the Ministry of Culture, is involved, the ministry will conduct a thorough investigation and clarify the facts within a week. Li emphasized the importance of fairness and truth in media reporting, asserting that the Ministry of Culture will not tolerate any media involvement in fraudulent activities.
What is Sanlih Group’s response?
Sanlih Group issued a statement yesterday evening, emphasizing that neither Sanlih nor Create Smart had any knowledge of or involvement in the matter.
Regarding Yi-Zhuan Co., Ltd.’s investment by Create Smart, a subsidiary of Sanlih Group, Create Smart clarified that Yi-Zhuan was merely an external investment and that Create Smart had not only abstained from any substantial management of Yi-Zhuan but had also terminated the collaboration by the end of last year.