Former head of ACE Cryptocurrency Exchange involved in fraud case increasingly intense, the Virtual Asset Service Provider (VASP) Association Preparatory Group swiftly clarified that, according to them, since September 2023, ACE has been involved in the preparatory group’s affairs by the current head, Wang Chenhuan, and not the person involved in this case.
(Timeline:
Taiwan fraud MLM promotes “USDT to buy virtual currency blind box” illegal fund-raising exceeds tens of millions
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(Background supplement:
Heavyweight》ACE Exchange explodes cryptocurrency fraud! Founder profited from selling “air coins” for many years and was arrested, estimated illegal gains exceeding 1 billion yuan (Mo Coin)
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The well-known ACE Cryptocurrency Exchange in Taiwan is increasingly involved in a fraud case, and as a result, the Virtual Asset Platform and Trading Business Service (VASP) Association Preparatory Group is also caught in the controversy. In response, the Preparatory Group held an emergency meeting yesterday (4th) and issued a public statement today (5th) regarding the investigation of members involved in currency fraud.
Firstly, the Preparatory Group reaffirms its commitment to follow Article 10 of the “Guidelines” issued by the Taiwan Financial Supervisory Commission on September 26, 2023, promising to make immediate announcements and clarifications for significant incidental events on the platform, demonstrating their commitment to self-discipline.
The Preparatory Group emphasizes that any member involved in a major criminal investigation, whether during the preparatory phase or after the formal establishment of the association, should suspend participation in public affairs until the investigation is concluded and there is either a non-prosecution disposition or a final judgment.
According to the Preparatory Group, ACE Exchange has actively provided information on the current situation and stated that its staff is assisting the investigation as witnesses. The head of the member in question was replaced by Wang Chenhuan, the managing partner of Jianye Law Firm, on December 14, 2023. Wang Chenhuan is registered as having 100% ownership and is not the person involved in the case.
Since September 2023, Wang Chenhuan, the current head of ACE, has been involved in related affairs of the Preparatory Group, and is “not” the person involved in this case. Wang Chenhuan expresses his apologies for the potential impact he may have on the Preparatory Group and voluntarily decides to temporarily leave the work of the Preparatory Group to reduce controversy.
The Preparatory Group: Strictly review the process of listing and delisting virtual assets
The Preparatory Group states that it respects the statutory procedures of the judicial authorities and the statutory rights of the parties involved, and based on the principle of non-disclosure and presumption of innocence, it awaits the final determination of the district prosecutor’s office or the court.
The Preparatory Group points out that when listing and delisting virtual assets, operators should consider not only the white paper but also review the compliance of the assets with regulations, liquidity, price manipulation risks, and the issuer’s sustainability. In addition, the content of advertisements for virtual assets and business solicitation activities should be strictly controlled to avoid improper, untrue statements, or fraudulent behavior.
This incident highlights the importance of pre-sale underwriting, Initial Exchange Offerings (IEOs), and the review mechanism for listing and delisting virtual assets. The Preparatory Group states that it will engage in in-depth discussions on these areas and formulate relevant industry standards to reduce the exploration of operators in unknown areas, mitigate risks, and prevent similar controversies from recurring.
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