Former head of ACE Cryptocurrency Exchange involved in fraud case, virtual asset service providers (VASPs) association’s preparatory group swiftly clarifies that, in fact, the current head of ACE, Wang Chenhuan, has been involved in the preparatory group’s related matters since September 2023, and is “not” involved in the current case.
(Previous summary:
Taiwan fraud MLM promotes “USDT to buy virtual currency blind boxes” illegally attracting over 10 million in funds.)
(Supplementary background:
Breaking》ACE Exchange bursts with crypto fraud! Founder profits from selling “air coins” for years and is arrested, illegal profits estimated to exceed 1 billion NT dollars (MoCoin)
The well-known ACE Cryptocurrency Exchange in Taiwan is increasingly involved in a fraud case, and as a result, the Taiwan Virtual Asset Platform and Trading Business (VASP) Association’s preparatory group is also embroiled 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 currency fraud.
Firstly, the preparatory group reiterates its commitment to the 10th article of the “Guidelines” issued by the Taiwan Financial Supervisory Commission on September 26, 2023, pledging to provide immediate announcements and clarifications for major incidental events on the platform, demonstrating its commitment to self-regulation.
The preparatory group emphasizes that any member involved in a major criminal investigation, whether during the preparatory phase or after the formal establishment of the association, should suspend participation in public affairs until the investigation concludes and there is no prosecution or a definitive judgment.
The preparatory group states that currently, ACE Exchange has proactively provided known facts and stated that its employees are assisting the investigation as witnesses. The head of the member in question was replaced by Wang Chenhuan, the managing partner of Jianye Law Firm, on December 14, 2023. Wang Chenhuan is registered with the competent authority, holds 100% of the shares, and is not involved in the case.
Since September 2023, Wang Chenhuan, the current head of ACE, has been involved in relevant matters for the preparatory group, “not” related to the current case. Wang Chenhuan expresses his apologies for the potential impact he may have brought to the preparatory group and has voluntarily decided to temporarily leave the preparatory group to reduce disputes.
The preparatory group emphasizes that it respects the statutory procedures of the judiciary and the statutory rights of the parties involved, and based on the principles of non-disclosure of investigations and presumption of innocence, it awaits the final determination of the district prosecutor’s office or court.
The preparatory group points out that when listing or delisting virtual assets, operators should not only consider the white paper but also review the compliance with regulations, liquidity, price manipulation risks, and the issuer’s sustainability. In addition, the content of virtual asset advertisements and business solicitation activities should 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 listing review mechanisms for virtual assets. The preparatory group states that it will engage in in-depth discussions on these areas, formulate relevant industry standards, reduce the exploration of operators in unknown areas, reduce risks, and prevent similar disputes from recurring.