The Taipei District Prosecutors Office recently uncovered a major cryptocurrency fraud and money laundering case, involving key suspects including the main perpetrator of the fraud group, a lawyer surnamed Wang, and several high-ranking individuals associated with ACE Exchange. The case involves a total amount of up to 2.2 billion New Taiwan Dollars and has had a significant impact on Taiwan’s cryptocurrency market. The trial for this case began on April 29th, revealing more information from the detained suspects.
According to reports, lawyer Wang Chenhuan was released on bail of 4 million New Taiwan Dollars and is restricted from leaving the country. The main suspect of the fraud group, Lin Genghong, Lin Ruoqiao, and five others including ACE founder Pan Yizhang, are currently detained and denied visitation rights, while the rest of the individuals were released on bail ranging from 200,000 to 1 million New Taiwan Dollars.
Lin Genghong, the main suspect in the fraud case, pleaded not guilty in court, claiming that the four types of cryptocurrencies he was accused of were innovative applications in Taiwan and that his actions were for the development and research of virtual currencies. Lin Genghong attempted to turn the courtroom into a product launch event, boasting that his virtual currencies had received market recognition, claiming that even director Wei Desheng and famous internet celebrities came to collaborate with him.
During the investigation, an outrageous additional case was uncovered involving former Jianye Law Firm director Wang Chenhuan, who made 70 million New Taiwan Dollars by deceiving clients into “shooting down low-orbit satellites.” Wang Chenhuan admitted to playing the role of a “strategist” and being involved in modifying the fraudulent white paper and engaging in money laundering. Wang Chenhuan expressed his willingness to reach a settlement with the victims and publicly apologized for his actions.
ACE Exchange founder Pan Yizhang, as well as his employees Gao Weilun and Lin Jingzhi, were accused of manipulating the prices of tokens related to the fraud group but denied any criminal behavior. Pan Yizhang claimed to be just a professional manager and had been trying to break free from Lin Genghong’s influence since 2021. It was not until 2023, when Lin Genghong found Wang Chenhuan to take over ACE Exchange, that he was able to leave. As for Gao Weilun and Lin Jingzhi, they emphasized that they were just ordinary employees and did not receive any additional benefits apart from their fixed salaries by selling virtual currencies.
Lin Shufen, the abbot of Lian Chi Temple in Yilan, was accused of assisting Lin Genghong in money laundering and brainwashing but argued in court that she only assisted Lin Genghong and others in their religious practices and had no knowledge of their commercial activities. Lin Shufen stated that her actions were based on religious beliefs and not intended to participate in fraud.
This case involves more than 1,292 reported victims, with a total loss exceeding 800 million New Taiwan Dollars. Many investors were lured by the high returns of virtual currencies and failed to identify the risks, ultimately falling victim to the fraud.
ACE
Lin Genghong
Pan Yizhang
Wang Chenhuan