Ace Exchange Involved in Fake Investment and Real Fraud
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 fake investments and real fraud through physical stores. The main individuals involved used methods such as issuing air coins to defraud up to 1,200 victims, with the total amount involved exceeding 2.2 billion New Taiwan Dollars.
From January to February of this year, prosecutors and police conducted searches on Ace Exchange and Fuhai Digital Innovation Company, detaining Ace Exchange founder Pan Yizhang and a man surnamed Hsu, the head of Fuhai Digital Innovation Company, along with a total of 11 individuals. The Taichung District Prosecutor’s Office indicted Pan Yizhang and six others starting in April this year.
According to the investigation results by the Taichung District Prosecutor’s Office, a man surnamed Pan and his partners collaborated with a fake investment fraud group, seeking victims through social media platforms such as Facebook and LINE. They gained the victims’ trust through high returns and gifts, and exploited the public’s established impression that “physical equals legal” to lead victims to the “physical stores” operated by Fuhai Company for fraud.
Prosecutors and police traced and raided physical stores
The Criminal Investigation Bureau’s Telecommunications Investigation Team, along with the criminal investigation units of Taichung and Kaohsiung, 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 City, totaling six stores.
Ultimately, prosecutors detained 49-year-old Tu, the head of UBC, 36-year-old Zhang, the head of Xinfudai, as well as its store manager and employees, totaling 13 individuals. However, the heads of Ha U and Bibi Digital remain at large. The prosecutors filed a request 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 involved faced detention from June to December last year, including Sun, the head of “Slowly Dining,” Wu, the head of “Mi Le,” Li, the head of “Jin Qiu,” and Zhuang, the head of “Ma Tuan Si,” among a total of 16 people.
Regulatory authorities still have work to do
Taiwan’s Financial Supervisory Commission (FSC), the authority for cryptocurrency and virtual asset regulation, issued “VASP Guidelines” last year, requiring operators to report and comply with anti-money laundering laws. Currently, 25 virtual currency operators have completed compliance statements. This includes the ACE Exchange, which has also applied to the government to establish an association to formulate self-regulatory norms as of December last year.
Despite the government’s strengthened regulation of the virtual currency market, exchanges that have completed anti-money laundering compliance statements have still faced a series of scandals, indicating that the government 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 that have government certification or are endorsed by celebrities may not necessarily be legal. It is crucial to exercise caution and conduct thorough research when encountering any information related to investments and money to prevent financial loss.