A large-scale virtual currency fraud case broke out in Taiwan in January, involving the local exchange ACE and the ProExchange controlled by the fraud group. The New Taipei City Police Department stated today that if victims still have mainstream assets in the Proex wallet, it is recommended to move them out to their own cold or hot wallets as soon as possible.
(Background: ACE virtual currency fraud case: How should victims seek compensation? When will downstream businesses be prosecuted? Progress of the trial..)
Table of Contents:
1. New Taipei City Police Department: Move ProEx assets out as soon as possible
2. How to deal with being unable to log in to ProEx?
3. Should junk coins be transferred out?
4. Complete process of reporting a case as a victim
The New Taipei City Police Department strongly urges victims to protect their rights and interests. In early January, Taiwan experienced a large-scale fraud involving garbage coins (MOCT, NFTC, CSO, FIT, etc.), which implicated the former and current responsible persons of the local ACE cryptocurrency exchange, as well as the overseas exchange ProExchange controlled by the fraud group (registered in Malaysia but operating in Taiwan, promoting sales through the listing of garbage coins).
Currently, the Taipei District Prosecutors Office announced the conclusion of the investigation at the end of April, and has prosecuted 32 individuals, including the head of the fraud group, Lin Geng-Hong, the former and current responsible persons of ACE cryptocurrency exchange, Pan Yi-Zhang, and well-known lawyer Wang Chen-Huan, on charges of organized crime, fraud, money laundering, etc. The main suspects face more than 20 years of imprisonment.
According to the joint litigation LINE self-help group of the victims, the personnel in charge of the New Taipei City Police Department stated this afternoon that if victims still have mainstream assets in the Proex wallet, it is recommended to move all the assets out to their own cold or hot wallets as soon as possible.
As the Proex official website is currently unable to be accessed through a browser, victims are advised to log in through the Android app.
Some victims asked, “Will converting junk coins to USDT for withdrawal affect subsequent compensation?”
The New Taipei City Police Department stated that victims can decide for themselves whether to transfer out junk coins. This notification mainly applies to mainstream currency assets, and victims can also retain screenshots of assets in Proex as evidence.
As for whether it will affect subsequent compensation, it depends on how the court determines it. But in general, the transfer of these junk coins will have records on the blockchain.
This fraud case has a wide scope. If you are also a victim of related tokens, please follow the process below and report to the police station as soon as possible.
Please first confirm whether the virtual currency involved in the investment fraud is “NFTC,” “BNAT,” “MOCT,” “SOLA,” “CSO,” “QQQ,” “QAS,” “PT,” “DS,” “BAAS,” “DEC,” “DET,” “FITC,” or “COR.”
If confirmed, please fill out the Google form to describe the case. Form link: [insert link]
To expedite the process, you can first go to 165 to fill out the report form. [insert link] Then go to the police station to make a statement. If the officer in charge is not clear about the situation, please ask them to contact the “fraud investigation officer in the local branch” or provide the official document number 1134431464.
Online reporting is only for reporting fraud. You still need to go to the local police station to complete the formal reporting process by making a statement.
The police statement will ask the following nine key points (provided by the New Taipei City Police Department):
1. When did the transaction take place? Who was the businessperson? How many tokens were purchased? What kind of cryptocurrency was it?
2. Did the other party use any social media platform accounts? Can you identify them?
3. How did you transfer the funds to the other party? Can you provide the other party’s bank account?
4. What is your cryptocurrency wallet address? What is the businessperson’s wallet address?
5. Were there any promises made by the businessperson in terms of returns within a certain period of time? Did they mention any well-known individuals or companies showing interest or participating in the investment of a certain cryptocurrency?
6. Did the businessperson share any positive marketing news articles about the involved cryptocurrency from media outlets such as “民生傳媒” (Minsheng Media), “Potato Media,” or “鏈新聞” (Chain News)?
7. Did Ace or ProEx exchange come recommended by the businessperson? Did you experience any issues with normal deposits or withdrawals on the exchange? Did withdrawals require system approval? Did they inform you of when your invested cryptocurrency would be listed on the exchange but repeatedly delayed it?
8. Did the businessperson inform you of any products, beauty treatments, travel experiences, or other exchange mechanisms associated with the issued cryptocurrency, but there was a significant discrepancy between what was promised and what was delivered?
9. Did the businessperson provide and explain the white paper of the purchased cryptocurrency? Is there a discrepancy between the white paper and the actual situation?
When the businessperson persuaded you to purchase token A, did they switch to token B due to insufficient stock of token A and resell it to you? Did the businessperson provide and explain the white paper of token B?
What is the amount of your financial loss in this case? Have you filed criminal complaints against the businessperson and the controlling group for fraud, money laundering, and violation of banking laws (illegal fundraising), along with requesting civil compensation?
Please prepare the following evidence before reporting to the nearby police station (provide as much evidence as possible to avoid the need for additional information later):
1. Purchase receipts or contracts
2. Records of receiving the involved tokens on the public ledger with your wallet address
3. Records of remittances or withdrawals
4. Profile pictures and photos of the businessperson on social media platforms, their verbal statements (only key points need to be included, if it is an audio recording, please provide a transcription text file)
5. Other attachments related to the case
Please remember to remind the police officer in charge to upload the case materials to the “165 Anti-Fraud Platform” and leave a message in the LINE self-help group notebook with the police station where the case was reported, the case number, and the 165 case number. Thank you for your cooperation.
Leave the case number in the LINE self-help group notebook.
Finally, you can join the LINE group “ICO Fraud (MOCT, BNAT, NFTC, CSO, FITC) Joint Litigation Self-Help Group” or scan the QR code below to log in. In the group, you can see the latest updates and consult with the responsible personnel from the New Taipei City Police Department.
Please leave a message in the self-help LINE group notebook with the police station where you reported the case, the case number, and the 165 case number.
Perhaps some victims may worry that filing a lawsuit will take up valuable time and energy, with no guarantee of success, so they decide to silently bear the frustration. Regarding this, the New Taipei City Police Department stated to Dynamic Zone:
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