Ace Exchange’s virtual currency fraud case prosecuted Lin Genghong and Pan Yizhang and sentenced to more than 20 years in prison

CNEWS Convergence News Network reporter Zhang Xiaoyi/Reporting from Taipei

The ACE Ace Group “ACE Ace Exchange”, which claims to provide a domestic legal virtual currency trading platform, was found to have colluded with the virtual currency fraud case. The Taipei District Prosecutor’s Office concluded the investigation today (26th), including the former head of Ace Exchange Pan Yi-chang Thirty-two defendants, including well-known lawyer Wang Chenhuan and the ringleader Lin Genghong, were all indicted on charges of fraudulent sales of virtual currencies, money laundering, organized crime, etc. The prosecutor also recommended that the court sentence Pan Yizhang and Lin Genghong to more than 20 years in prison, and Wang Chenhuan More than 12 years.

The prosecutors seized a total of more than 600 million yuan in this virtual currency fraud case (including more than 181.33 million yuan in cash, 20,000 yuan[equivalent to approximately 90,260 yuan]248 virtual currency BNB[Binance Coin]BTC[Bitcoin]43 pieces, USDT[Tether Coin]1.943602 pieces, ETH[Ethereum Coin]2,300 pieces, the above-mentioned virtual currencies were converted to about 400 million yuan based on the value on April 11, 2013) and Mercedes-Benz since childhood 1 passenger car (price has been changed to 1.71 million yuan), 1 McLaren minibus and other items. The prosecutor also recommended that the court declare confiscation.

The prosecution pointed out that Lin Genghong, Pan Yizhang, Lin Ruoqiao and others all 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 and the cost of casting was low. There is no practical application prospect.

Four people have actually been working together through criminal organizations since 108 to write false virtual currency white papers, operate Ace Exchange and ProEx Exchange, and list virtual currencies on exchanges (Ace Exchange: MOCT Coin, ProEx Exchange: CSO coins, FITC coins, etc.), etc., take advantage of the fact that ordinary people lack full knowledge and understanding of the principles, values ​​and trading methods of virtual currencies, and then set up IMBA direct sales teams and branches to promote and market Online media spread false news, manipulated currency prices on exchanges, and other means to deceive unspecified people into investing in and purchasing virtual currencies. In this way, they defrauded nearly NT$800 million (the amount defrauded by the victims has been reported).

Wang Chenhuan knew clearly that CSO coins, FITC coins, NFTC coins and BNAT coins had no actual value, and the names of the teams included in the issued white paper were also fictitious English names, but he still taught Lin Genghong in the role of “strategist” in June 2012 Others modified the content of the white paper so that the false information presented after the modification led users of the white paper to believe that the professional team members actually existed and formally complied with the provisions of the white paper, and arranged for these virtual currencies to be exchanged for physical goods or services and listed on DEEPCOIN , UNISWAP exchange, making it appear to have real application value and a trading platform that can be circulated and realized, so as to win the trust of others.

After investigation and statistics, the prosecutors found that the criminal organization composed of defendant Lin Genghong and others had obtained at least more than 2.2 billion yuan in criminal proceeds from the fraudulent sales of various virtual currencies and blockchain-related products. Lin Genghong and others also instructed their subordinates to move and hide the illegal gains obtained through fraud in batches from several million to 10 million yuan in cash throughout Shuangbei City, and then use them for other purposes. The illegal proceeds totaling more than 100 million yuan were handed over to Lin Shufen and others for the purchase and operating expenses of the “Lotus Jingshe” in Yilan, which was used as one of the bases for money laundering. The criminal proceeds of 43 million yuan were delivered to Wang Chenhuan, of which 26 million yuan was used as the capital increase of Ace Exchange, and the other 17 million yuan was used as the investment fund of the Bangkok law firm. A total of 47.4 million yuan of criminal proceeds was delivered to Li Yannan and other methods, thereby creating a breakpoint in the cash flow, concealing, concealing and using specific criminal proceeds to carry out money laundering crimes.

The prosecutor pointed out that the number of victims in this case exceeded 1,200, and the loss amounted to nearly 800 million yuan. Lin Genghong, Pan Yizhang, Lin Ruoqiao, and Chen Jinyang were all the core criminals in this case. They used their professional knowledge and influence in the currency circle to collude with each other and join forces to defraud. Unspecified people who endanger social and economic order to a great extent, the circumstances and viciousness involved are serious, and they deny the crime after committing the crime, please be sentenced to a fixed-term imprisonment of more than 20 years.

As the director of a well-known domestic law firm and the president of an ace exchange, Wang Chenhuan 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 acted as a “strategist” “The role assists the fraud group in creating the illusion that junk coins have liquidity. After the crime, he only confessed to some of the crimes of leaking secrets and money laundering, and showed no regrets. It is recommended that he should be sentenced to a fixed-term imprisonment of more than 12 years.

Photo source: CNEWS Convergence News Network file photo

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