Economic Daily Report
On the 29th, the Economic Daily reported that after five months of investigation by the Taichung District Prosecutors Office, the two co-founders of XREX, Huang Yaowen and Xiao Huizong, are suspected of being involved in the “Afu Wallet” money laundering case. Both have confessed during the investigation and received deferred prosecution.
(Background Supplement: XREX’s latest response: Trust in justice! We believe that the judiciary will handle the case fairly and that we will actively cooperate with the investigation.)
Investigation Summary
According to a report from the Economic Daily this afternoon, after five months of investigation by the Taichung District Prosecutors Office regarding the two co-founders of XREX, Huang Yaowen and Xiao Huizong, who are suspected of being involved in the “Afu Wallet” money laundering case, both have confessed during the investigation. Additionally, a police officer surnamed Xie, who is suspected of leaking information, also confessed. The prosecutor has granted deferred prosecution for all three individuals.
Case Origin: The Taichung District Prosecutors Office previously investigated a criminal organization operating a large virtual currency exchange, uncovering that the ACE exchange created the “Afu Wallet” app, which was suspected of fraud and money laundering amounting to over 300 million yuan, leading to an indictment last March.
During the investigation of the Afu Wallet case, the prosecutor’s office discovered complete victim inquiry records of dozens of fraudulent cases in a cloud folder controlled by money laundering accomplices, prompting a search for the source of these records. In early December last year, the prosecutors summoned Chen Meihui, her boyfriend who is a police officer surnamed Xie, and XREX’s two co-founders, Xiao Huizong and Huang Yaowen, listing all four as defendants.
Today, the prosecutors announced the conclusion of the investigation, stating that since the police officer surnamed Xie, Xiao Huizong, and Huang Yaowen all confessed during the interrogation, all three received deferred prosecution. However, Chen Meihui passed away in a car accident while returning from an interrogation in December last year, thus she will not be prosecuted.
According to informed sources, it is said that the two founders, Xiao Huizong and Huang Yaowen, will be investigated for money laundering offenses related to the Afu Wallet fraud case. Suspects from this case had opened accounts at the XREX exchange and engaged in monetary transactions, leading prosecutors to suspect that the two founders of XREX colluded in money laundering.
Chen Meihui and the police officer surnamed Xie’s boyfriend are being investigated for leaking confidential information, such as case details and victim personal data, without following legal procedures during the investigation of the Afu Wallet case.
XREX’s Statement
Regarding their involvement in the case, XREX also issued a statement last year.
In response to the cooperation of our relevant personnel with judicial authorities in investigating the case, to clarify the facts and avoid any confusion or misinformation, we hereby declare the following:
As stated in the press release from the Taichung District Prosecutors Office on December 6, the investigation into the “Afu Wallet” APP, suspected of fraud and money laundering, concluded in March this year with an indictment. In the process of this investigation, the special task force continued to clarify relevant facts. After being summoned, our relevant personnel cooperated in providing explanations and evidence to the Taichung District Prosecutors Office. Currently, the case is still in the investigation phase, and our company respects the judicial process and believes that the relevant judicial authorities will handle the matter fairly.
To prevent any speculation or misunderstanding during the investigation, our company is actively cooperating with the investigation to assist in restoring the truth. We wholeheartedly believe in judicial justice and are committed to maintaining the company’s reputation.
*Reminder: Individuals involved in the case should be presumed innocent until proven guilty by a judicial verdict.
