After the presidential election in Taiwan, law enforcement agencies have exposed more law enforcement achievements. A company posing as an overseas forex broker has attracted 1.4 billion New Taiwan dollars, despite having no connection to cryptocurrencies and DeFi. However, the registered company used the name of a decentralized exchange in an attempt to deceive people.
(ACE investigation: Scammer Lin Genghong and model lawyer Wang Chenhuan are the masterminds of the air currency scam, and Pan Yizhang is responsible for serving as a frontman.)
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The Great Revealing of Financial Scams: Former CEO of Agis and his associates are suspected of attracting 1.4 billion New Taiwan dollars
The registered company claims to be a decentralized exchange
Taipei District Prosecutors’ Office conducts extensive searches and asset seizures
Invited celebrity Cai Shanghua to host the press conference
More implicated companies exposed: Fengsheng Fund and its distributors implicated in fraud
According to reports, the former CEO of Agis Exchange, Xu Xianzhong, and his associates are accused of using the identity of a fake Australian forex broker, ACDEX, and through the “FINDEX.WIN” website created by Samoa-based Dahua Xinrui, they conducted a large-scale fraud. They promised investors “dual warehouse hedging forex interest rate differential trading,” opening both long and short positions on the same target to profit from the difference. They falsely claimed an annual return rate of up to 14%, attracting thousands of investors and involving funds of up to $48 million.
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Taipei Investigation Bureau stated that the fraud group registered the name “Agis Exchange” (Algo Cypher Decentralised Exchange) in Hong Kong, which coincidentally matches the Australian forex broker, ACDEX. Decentralized Exchange is also an English term for decentralized exchanges. It has nothing to do with blockchain, but this company inexplicably used this name.
Under the command of Taipei District Prosecutors’ Office, the Taipei Investigation Bureau and the Criminal Investigation Bureau carried out extensive search operations. Assets worth approximately 115 million yuan were seized during the operation, and 25 individuals were summoned for questioning based on suspected violations of the Banking Act and the Securities and Investment Trust Act. After questioning, four of them were detained and not allowed to meet with visitors.
The fraud group even impersonated ACDEX and held an event called “Establishment of Asia-Pacific Operation Headquarters and International Fund Strategic Cooperation Press Conference” at the Mandarin Oriental Taipei Hotel in May 2020, inviting famous host Cai Shanghua to attend. Although Cai Shanghua was not involved in this case, his social media posts increased the credibility of the event.
In addition to Agis Exchange, the foreign company Fengsheng Global Capital Fund Management Company has also been accused of illegally selling funds and falsely claiming that these funds will be invested in “dual warehouse hedging forex interest rate differential trading.” However, in reality, these funds fell into the hands of the fraud group and were not invested as claimed.
ACDEX
Algo Cypher
Agis
Dual warehouse hedging forex interest rate differential trading
Further reading
Bitget Report Shows 33% of Cryptocurrency Job Seekers Come from the Banking Industry
SEC States Bitcoin’s ETFs Increase Transparency, Reaffirms Disapproval of “Other” Cryptocurrencies.