Pan Yi-chang, the former head of Taiwan’s top three virtual currency exchanges “ACE Ace Exchange”, and well-known lawyer Wang Chenhuan colluded with Lin Genghong, the leader of the fraud group, and others to defraud investors into investing in air coins since 2019. The Taipei Prosecutor’s Office concluded its investigation today and charged 32 people including Pan and Wang with organized crime, fraud, money laundering and other crimes, and requested severe sentences.
(Recap:Pan Yizhang of ACE Exchange was charged with fraud, money laundering and organized crime. The Central Prosecutor’s Office formally prosecuted him and asked for a heavy sentence.)
(Background supplement:ACE Exchange was involved in a conspiracy to launder 33 billion in money using Alfred Wallet and A+CARD! Retired couple lost 100 million USDT)
ACE Ace Exchange colluded with a fraud group to engage in virtual currency fraud. The Taipei Prosecutor’s Office today announced the conclusion of the investigation and formal prosecution. The Beiquan press release pointed out that the leader of the fraud group, Lin Genghong, Pan Yizhang, the former head of ACE Ace Exchange, well-known lawyer Wang Chenhuan and others formed a criminal organization to trick victims into investing in virtual currencies that cannot be converted into cash. They defrauded nearly 800 million yuan and were involved in money laundering. reaching 2.2 billion yuan.
The Beijing Prosecutor’s Office today indicted 32 people, including Lin Genghong, Pan Yizhang, and Wang Chenhuan, for crimes such as organized crime, fraud, and money laundering, and requested severe sentences. Currently, 14 people, including Pan Yizhang, Wang Chenhuan, and Lin Genghong, are in custody and will be transferred to the Taipei District Court for trial next Monday. .
Scammed thousands of people, earning at least 2.2 billion yuan in criminal proceeds
A press release from the Taipei District Prosecutor’s Office stated that the defendants Lin Genghong, Pan Yizhang, Lin Ruoqiao and others knew that the virtual currencies MOCT coins (magic coupon coins), CSO coins, FITC coins, NFTC coins and BNAT coins were essentially electronic signals generated by computer programs. The casting cost is low and there is no practical application prospect. However, since the 108th year of the Republic of China, criminal organizations have divided their labors to write false virtual currency white papers, operate Ace Exchange and ProEx Exchange, and list virtual currencies on two exchanges. (Ace exchange: MOCT coin, ProEx exchange: CSO coin, FITC coin and other coins).
The fraud group takes advantage of the general public’s lack of full knowledge and understanding of the principles, value and trading methods of virtual currencies, and then sets up IMBA direct sales teams and branches to promote sales, spreads false news in online media, and manipulates currency prices on exchanges. By other means, they deceived unspecified people into investing in virtual currencies, and defrauded at least nearly 800 million yuan in this way.
In addition, according to prosecutors’ investigation and statistics, Lin Genghong and others formed a criminal organization to fraudulently sell various virtual currencies and blockchain-related products, with criminal proceeds of at least 2.2 billion yuan.
Exposing money laundering methods
Lin Genghong and others instructed their subordinates to move and hide illegally obtained cash in batches from several million to 10 million yuan each time throughout Shuangbei City, and then used it for other purposes. They also transferred more than 100 million yuan in illegal gains Yuan, was paid to Lin Shufen, Xie Shiying and others for the purchase and operating expenses of the “Lianchi Jingshe” in Yilan, which was used as one of the bases for money laundering.
Lin Genghong instructed his subordinates to deliver 43 million yuan of criminal proceeds to Wang Chenhuan, of which 26 million yuan was used as a capital increase for Ace Exchange and another 17 million yuan was used as an investment in Bangkok Jianye Law Firm.
Beijing Inspection stated that Wang Chenhuan knew that CSO coins, FITC coins, NFTC coins and BNAT coins had no actual value, and the team names included in the issued white paper were also fictitious English names, but he still taught in the role of “strategist” in June last year Lin Genghong and others modified the content of the white paper to comply with formal regulations. The information in it was false, making users believe that there was a professional team. They also arranged for the virtual currency to be exchanged for physical goods or services, and listed on the DEEPCOIN and UNISWAP exchanges, making it appear to be tangible. The value of the application and the trading platform can be circulated and monetized to win the trust of others.
Northern prosecutors seek severe punishment
The Beijing Prosecutor’s Office requested the court to consider that the number of victims in this case exceeded 1,200 and the amount of losses was nearly 800 million yuan. Four of them, including Lin Genghong, Pan Yizhang, Lin Qianqiao, and Chen ○ Yang, were the core criminals in this case. They used each other’s professional knowledge and currency circles to Influences colluded with each other and jointly deceived the people, which caused great harm to the social and economic order and serious malignancy. They denied it after committing the crime. Please be sentenced to more than 20 years in prison.
In addition, the Beijing Prosecutor’s Office pointed out that Wang Chenhuan, as the director of a well-known domestic law firm and the president of an ace exchange, colluded with the mastermind of a fraud group, participated in a criminal organization, leaked investigation secrets to Lin Ruoqiao, provided a house to hide the wanted Lin Genghong, and Play the role of “strategist” to help the fraud group create the illusion that junk coins have liquidity.
Wang Chenhuan also received and used up to 43 million yuan in criminal proceeds to increase the capital of the flagship exchange, and even laundered the criminal proceeds to overseas law firms to obstruct the prosecution and police investigation. After the crime, he only confessed to part of the leaking of secrets and money laundering, and did not say anything. If he shows no remorse, he is recommended to be sentenced to more than 12 years in prison.
