Former head of ACE Cryptocurrency Exchange implicated in fraud case, virtual asset service provider (VASP) industry association’s preparatory group quickly clarifies, according to their statement, ACE has been involved in the preparatory group’s affairs since September 2023, with the current head, Wang Chenhuan, participating, and is not involved in the current case.
(Timeline:
Taiwan fraud MLM promotes “USDT to buy virtual currency blind box” illegal fundraising over tens of millions)
(Background:
Breaking News》ACE Exchange involved in cryptocurrency fraud! Founder profited from selling “air coins” for many years and has been arrested, estimated illegal gains exceeding 1 billion NTD)
The well-known ACE Cryptocurrency Exchange in Taiwan is increasingly embroiled in a fraud case, and as a result, the Taiwan Virtual Asset Platform and Trading Business (VASP) Industry Association’s preparatory group is also caught 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 suspected of involvement in currency fraud.
Firstly, the preparatory group reiterates its commitment to comply with the “Guidelines” issued by Taiwan’s Financial Supervisory Commission on September 26, 2023, promising to make immediate announcements and clarifications regarding 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 stage or after the formal establishment of the association, should suspend their participation in public affairs until the investigation is concluded and there is no prosecution or a final judgment.
According to the preparatory group, ACE Exchange has actively provided information on the current situation and stated that its employees are assisting the investigation as witnesses. The head of the member in question was replaced on December 14, 2023, by Wang Chenhuan, the managing partner of Jianye Law Firm, who is registered with the regulatory authority and holds a 100% stake, and is not involved in the case.
Since September 2023, Wang Chenhuan, the current head of ACE, has been involved in relevant matters of the preparatory group and is “not” involved in the current case. Wang Chenhuan expressed apologies for the potential impact he may have on the preparatory group and voluntarily decided to temporarily leave the preparatory group’s work to reduce controversy.
The preparatory group states that it respects the statutory procedures of the judicial authorities and the statutory rights of the parties involved, and based on the principles of non-disclosure of investigations and the presumption of innocence, it will await the final determination of the district prosecutor’s office or the court.
The preparatory group points out that when operators list or delist virtual assets, they 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 advertisements for virtual assets and business solicitation activities should also be strictly controlled to avoid inappropriate, 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 stated 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, mitigate risks, and prevent similar disputes from recurring.