Taiwan’s Virtual Asset Platform Steaker Responds to Prosecution with Statement Clarifying Legal Operations
Steaker, a virtual asset platform in Taiwan, has officially issued a statement addressing the prosecution’s allegations, asserting that it has not engaged in illegal operations and emphasizing its compliance with laws and ongoing communication with regulatory authorities since its inception. Founder Huang Wei-hsuan also spoke out for the first time, reiterating that no user assets have been misappropriated and that the company will fully cooperate with legal proceedings to clear its name. This incident has once again raised concerns regarding the applicability of regulations in the cryptocurrency industry.
Regret Over Prosecution: Inconsistent Court Opinions Create Legal Risks
Steaker expressed regret and disappointment regarding the prosecutor’s accusations of violating the Banking Act and Anti-Money Laundering Act. They emphasized that the company sought legal professional advice at its inception and confirmed the court’s interpretations at that time to ensure the legality of its business model. The company pointed out that recent inconsistencies in court opinions regarding virtual asset cases have created significant uncertainty for the startup industry.
Emphasis on Legal Operations and Active Compliance with Regulatory Adjustments
Since its establishment in 2019, Steaker has been committed to providing virtual asset allocation services for Taiwanese users. In response to the Anti-Money Laundering regulations issued for virtual asset operators in Taiwan in 2021, the company quickly took the following actions:
- Engaged experienced compliance consultants to adjust its organization and train internal staff.
- Established the SAFU fund to address systemic risks.
- Submitted an Anti-Money Laundering declaration to the Financial Supervisory Commission and continuously improved its operational model.
- Upgraded the KYC system in 2022, restricting access for users who have not completed identity verification.
Steaker stated that these measures are aimed at ensuring compliance with laws while enhancing platform security and user protection.
Refutation of Illegal Deposits and Asset Mixing Allegations
In response to the prosecution’s claims that Steaker allegedly violated Article 29 of the Banking Act, Steaker clarified that virtual assets are not legal tender and are fundamentally different from traditional financial systems, thus should not be interpreted directly under the Banking Act.
Additionally, the company refuted the notion of “asset mixing,” emphasizing that the ENTRYONLY sub-accounts used for user deposits are necessary for management and do not imply any concealment of funds. All fund transactions are clearly recorded and segregated.
Never Guaranteed Profits, Risks Disclosed Transparently
Steaker emphasized that it has never guaranteed users’ principal or profits, and the platform consistently disclosed product risks, reminding users of the volatility of virtual assets through the registration process, product pages, and terms. The establishment of the SAFU fund is intended to protect user interests during periods of market volatility, not to mislead users into investing.
FTX Bankruptcy Impact: Steaker Launches Dawn Plan to Compensate Users
In late 2022, the sudden bankruptcy of FTX, the world’s second-largest exchange, severely impacted Steaker, which the company described as a force majeure. The company promptly initiated a compensation plan known as the “Steaker Dawn,” with over 86% of users participating and receiving corresponding compensation shares.
Users can track the compensation progress through dawn.steaker.com. Steaker stated that it will continue to push for compensation to protect the rights of all participants.
Platform Suspends Operations Indefinitely, Users Can Still Withdraw Full Amounts
Since April 28, 2023, Steaker has indefinitely suspended all platform operations, including product purchases and new user registrations. However, users unaffected by the FTX incident can still log into the original platform steaker.com to withdraw virtual assets using their original wallet, with a guarantee of 100% refunds.
Founder Speaks Out: No Misappropriation of Assets, Will Fully Address Lawsuit
Founder Huang Wei-hsuan publicly stated in an announcement that he has actively cooperated with investigations over the past two and a half years and has continued to promote compensation plans even while in detention. He emphasized:
“Steaker has never received legal tender, has never promised capital preservation, has never issued its own tokens, and has never misappropriated user funds.”
Huang Wei-hsuan pointed out that the company has appointed bankruptcy specialists in the U.S. to participate in claims against FTX and is actively recovering other assets to compensate users. He criticized media and certain online opinions for misleading public sentiment, stressing that he has not gone into hiding but is continuously working to resolve user issues.
Ambiguity in Industry Regulations Calls for Rational Approach to Innovative Industries
Steaker emphasized that Taiwan’s legal positioning on virtual assets remains ambiguous, particularly regarding the applicability of the Banking Act and Anti-Money Laundering Act. They called on all sectors to support the growth and challenges of innovative industries with rationality and institutional backing.
Huang Wei-hsuan also stated:
“I do not evade responsibility, but we need a logical and procedural environment that allows entrepreneurs to move forward with confidence.”
Subsequent Developments Await Judicial Ruling, Steaker Will Continue to Update Information
Steaker stated it will respect judicial proceedings and continue to provide explanations and evidence, hoping the court will restore the truth of the incident. The company also promised to publish all subsequent developments on its official website and thanked the public for their attention and support for the Steaker team.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, with prices capable of fluctuating dramatically, and you may lose all your principal. Please assess risks carefully.