Taiwan’s three major exchanges, ACE, have sparked widespread discussion due to the involvement of its founder, Pan Yizhang, and current director Wang Chenhuan, in an air coin fraud case. The exchange’s operating team continues to maintain normal deposits and withdrawals and collaborates with banks to protect the rights and interests of funds. In a recent court document, ACE’s current management team is seen facing the difficulties caused by shareholders’ alleged criminal activities.
(ACE Investigation: Fraudster Lin Genghong and model lawyer Wang Chenhuan are the masterminds of the air coin fraud, with Pan Yizhang serving as the nominee responsible.)
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ACE management team seeks to overcome obstacles caused by individuals involved in the case
Court believes ACE’s operations are unaffected and there is no need for a “temporary administrator”
ACE management team statement: Fulfilling legal obligations to ensure normal operations
ACE management team response: Striving to sustain ACE’s operations
According to the Civil Document of the Taipei District Court, the ACE exchange management team applied to the court for a “temporary administrator” to exercise decision-making rights, including preventing business interruptions, bank funds from being inaccessible, employee salaries from being unpaid, and system and operational expenses from being unable to be paid.
However, on March 14th, the court found that ACE Exchange is currently not obstructed in its various operational practices. The submitted evidence cannot prove a connection with the individuals involved in the case and therefore the court rejected the need for a “temporary administrator.” ACE exchange’s management team stated that they will appeal again.
After specific media reports on this matter, ACE Exchange issued a statement and expressed the reservation of their legal rights:
“ACE Exchange is operating normally, and the application process is only to implement corporate governance. Regarding the reported reasons by the media, this action is solely in accordance with the Companies Act to exercise the existing rights of the exchange and fulfill legal obligations to ensure that the operation is not affected by external forces. It does not involve any financial issues as reported by the media. All Taiwanese assets in ACE Exchange are protected by KGI Bank’s trust services, and all cryptocurrency and New Taiwan Dollar deposit and withdrawal services are operating smoothly. We reserve all legal rights for any reputational damage or other consequences caused by false accusations against ACE Exchange and its staff.
ACE Exchange’s management team has always been committed to complying with laws and regulations, and we will act in accordance with the law regarding any suspected illegal events, including delisting controversial currencies if necessary. We support the strict enforcement of the law to maintain market order and protect investor rights.”
ACE Exchange’s management team stated that they are appealing to fulfill their legal obligations regarding corporate governance.
ACE is Taiwan’s first virtual currency exchange to face difficulties due to senior management’s involvement in air coin fraud. Although deposits and withdrawals are currently unaffected, the exchange is in a state of “no owner” due to the arrest of the company’s founder and director.
When interviewed, ACE’s current management team expressed their commitment to finding solutions and ensuring the normal operation of ACE’s business.
ACE
Pan Yizhang
Wang Chenhuan
Wang Hongsai
Temporary Agent
Further reading:
Three major challenges for cryptocurrency regulation in Taiwan: Professor Yang Yueping – ACE Exchange incident exposes all regulatory issues in the country
Continued squatting! Taipei District Prosecutors Office applies for extension of detention for fraud group suspect Lin and ACE’s key personnel involved