The ACE premier exchange fraud case was brought to court for the first time at the Taipei District Court yesterday. The alleged mastermind of the fraud ring, Lin Genghong, denied the accusations when he appeared in court yesterday morning, claiming that he never intended to break the law and conducted virtual currency transactions with the highest standards and strictest attitude, without any intention of fraud.
(Background:
Wei Desheng was accused of collaborating with Lin Genghong, the mastermind of the ACE fraud case, and urgently clarified: never met before
)
(Supplementary background:
ACE exchange Wang Chenhuan’s bail increased to 8 million! Electronic ankle monitor installed, complaining “all assets frozen” unable to flee
)
Table of Contents
Lin Genghong denies the accusations
Lawyers defend lack of criminal intent
Prosecutors accuse of concealing criminal proceeds
The ACE premier exchange collusion fraud case, announced by the Taipei District Prosecutors’ Office on April 26,
investigation concluded, charging the head of the fraud ring Lin Genghong, former and current responsible individuals at ACE premier exchange, prominent lawyer Wang Chenhuan, and 32 others with offenses including organized crime, fraud, and money laundering, seeking over 20 years of imprisonment for the main suspects.
The prosecution indictment accuses the fraud ring of selling virtual currencies MOCT, CSO, FITC, NFTC since 2019, creating false investment white papers, selling them through Wangpai and ProEx exchanges, establishing IMBA direct sales teams for promotion, publishing fake news on online media, manipulating coin prices, deceiving 1292 victims into investing and purchasing, resulting in nearly 800 million yuan in fraud proceeds.
According to reports by Liberty Times, United Daily News, etc., the ACE exchange fraud case was brought to court for the first time on the 6th, with Lin Genghong and key members of the direct sales team Lin Ruoqiao summoned, while Pan Yizhang, Wang Chenhuan, and other exchange members will appear in court at a later date.
It is understood that Lin Genghong denied the accusations in court, emphasizing that virtual currency trading is a new industry with incomplete regulations, and he had no intention of committing fraud.
Lin Genghong argued that he knew virtual currencies could be traded but not used for fraud. Therefore, he turned to the Wangpai exchange, guided by KPMG, founded by Pan Yizhang, and the ABA accelerator established by Pan Yizhang received economic subsidies, making it credible and responsible for assisting the group in blockchain and virtual currency guidance.
Lin Genghong stated that all supervisors involved or employees writing white papers had professional knowledge, and he conducted virtual currency transactions with the highest standards and strictest attitude to innovate in virtual currency, without any intention of deceiving people.
Lin Genghong’s defense lawyer Xie Xiechang stated that the IMBA association was not established as a criminal organization for implementing fraud, there was no guarantee of profit in this case, all fund management had complete records and no intention of concealment or disguise.
Lin Genghong’s other appointed lawyer Chen Weicheng emphasized that if Lin Genghong truly wanted to commit fraud, he would not complicate matters in this way, and IMBA is not an organization with strict top-down control, with all chairmen and branch presidents just honorary titles, very different from the typical fraud group’s criminal model.
Lawyer Xue Qinfeng defended that the virtual currency created by Lin Genghong was not the worthless junk currency as alleged by the prosecution, and the prosecution must bear the burden of proof that virtual currency has no value. He also mentioned that salespeople had to pass an exam to join the IMBA sales team, indicating a certain level of difficulty, and if the company wanted to defraud or raise funds, it would not need to go to such lengths.
Previously, the prosecution accused Lin Genghong of moving the defrauded cash in batches to hide in the greater Taipei area, giving over 100 million yuan to the host Lin Shufen for the purchase and operation expenses of the Lianchi Temple, 43 million yuan to Wang Chenhuan, including 26 million yuan as capital increase for the Wangpai exchange, and another 17 million yuan to invest in a law firm in Bangkok, with 47.4 million yuan hidden by former “Innovative New Retail” general manager, assistant to the general manager of Sanli TV Company Li Yannan.
Wang Chenhuan was accused of acting as a “strategist” teaching Lin Genghong to modify white papers, arranging virtual currency exchange for physical goods services, listing them on DEEPCOIN, UNISWAP exchanges, assigning lawyers to obtain confidential information to the fraud ring, and providing his Zhongzheng Road house in Xindian for Lin Genghong, who was wanted, to hide in.
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