Former head of ACE Cryptocurrency Exchange implicated in fraud case intensifies, Virtual Asset Service Providers (VASP) Association Preparatory Group swiftly clarifies, in fact, since September 2023, the current head of ACE, Wang Chenhuan, has been involved in preparatory group related affairs, “not” the person involved in this case.
Update:
Taiwan fraud MLM promotes “USDT to buy virtual currency blind box” illegal fundraising over tens of millions.
Background:
Bombshell》ACE exchange explodes with cryptocurrency fraud! Founder profited from selling “air coins” for many years and was arrested, estimated illegal profits exceeding 1 billion NTD (Mokuan Coin).
The well-known ACE Cryptocurrency Exchange in Taiwan has been implicated in a growing fraud case. The Virtual Asset Platform and Trading Business Association Preparatory Group has also been caught up 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 its members for suspected cryptocurrency fraud.
Firstly, the Preparatory Group reaffirms its adherence to Article 10 of the “Guidelines” issued by the Financial Supervisory Commission of Taiwan on September 26, 2023, committing to promptly announce and clarify any major incidents that occur on the platform, demonstrating a commitment to self-regulation by the industry.
The Preparatory Group emphasizes that any member involved in a major criminal investigation, whether during the preparatory stage or after the formal establishment of the association, should suspend their participation in public affairs until the investigation is concluded and no prosecution or final judgment is made.
The Preparatory Group states that currently, the ACE exchange has proactively provided known facts and stated that its staff is assisting the investigation as witnesses. The head of the exchange was changed to Wang Chenhuan, the managing partner of Jianye Law Firm, on December 14, 2023. He is registered as the sole shareholder with 100% ownership and is not involved in the case.
Since September 2023, Wang Chenhuan, the current head of ACE, has been involved in the Preparatory Group’s affairs, “not” the person involved in this case. Wang Chenhuan expresses his apologies for the potential impact he may have on the Preparatory Group and has voluntarily decided to temporarily leave his position in the group to reduce controversy.
The Preparatory Group states that it respects the statutory procedures of the judicial authorities and the legal rights of the parties involved and will await the final determination of the district prosecutor’s office or the court based on the principles of non-disclosure and presumption of innocence.
The Preparatory Group points out that when platform operators list or delist virtual assets, they should not only consider the whitepaper but also review the compliance of the assets with laws and regulations, liquidity, price manipulation risks, and the issuer’s sustainability. In addition, the content of virtual asset advertisements and business solicitation activities should also be strictly controlled to avoid improper, false 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, minimize risks, and prevent similar disputes from happening again.
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