The former head of ACE Cryptocurrency Exchange is increasingly involved in a fraud case, causing a controversy for the Virtual Asset Service Providers (VASP) Association Preparatory Group. In fact, starting from September 2023, the current head of ACE, Wang Chenhuan, has been involved in the preparatory group’s related matters, and is “not” the person involved in the current case.
(Timeline:
Taiwan’s fraudulent direct selling of “USDT to buy virtual currency blind boxes” illegally raised over tens of millions)
(Context:
Breaking News: ACE Exchange exposed cryptocurrency fraud! The founder profited from selling “air coins” for many years and was arrested, with estimated illegal gains exceeding 1 billion NTD (Modex Coin))
The well-known ACE Cryptocurrency Exchange in Taiwan is increasingly involved in a fraud case, causing a controversy for the Taiwan Virtual Asset Platform and Trading Business (VASP) Association Preparatory Group. In response, the Preparatory Group held an emergency meeting yesterday (4) and issued a public statement today (5) regarding the investigation of its members for suspected cryptocurrency fraud.
Firstly, the Preparatory Group reaffirms its commitment to adhere to Article 10 of the Guidance Principles issued by the Taiwan Financial Supervisory Commission on September 26, 2023, which promises to provide immediate announcements and clarifications regarding significant incidents on the platform, demonstrating its 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, ACE Exchange has voluntarily provided known facts and stated that its staff members are assisting the investigation as witnesses. The person in charge of ACE was changed to Wang Chenhuan, the managing partner of Jianye Law Firm, on December 14, 2023, and is registered with the regulatory authority, holding 100% of the shares and not being involved in the case.
Since September 2023, Wang Chenhuan, the current head of ACE, has been involved in the related matters of the Preparatory Group, but is “not” the person involved in the current 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 Preparatory Group to reduce controversies.
The Preparatory Group: Strictly review the process of listing and delisting virtual assets.
The Preparatory Group respects the statutory procedures of the judiciary and the legal rights of the parties involved, and based on the principles of non-disclosure of investigations and the presumption of innocence, awaits the final determination by the district prosecutor’s office or the court.
The Preparatory Group points out that when listing or delisting virtual assets, operators should not only consider the white papers but also review the compliance 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 also be strictly controlled to avoid improper, false statements, or fraudulent behavior.
This incident highlights the importance of presale underwriting, Initial Exchange Offering (IEO), and the review mechanism for listing and delisting. The Preparatory Group states that it will engage in in-depth discussions on these areas to develop industry standards, reduce the exploration of operators in unknown territories, mitigate risks, and prevent similar disputes from happening again.
Related Reports
Taiwanese man encounters “Love Rug Poll” on dating app: Earned 1.8 million NTD from virtual currency, is she scamming me?
“Miss” Jan Ziqing claims to be a loyal user of Binance! Appears at Binance Camp in the Maldives: Lost millions of NTD due to believing in scams.
JPEX copycat? Hong Kong hit by another “HOUNAX” exchange fraud, involving an amount of up to 120 million HKD.