Founder of Cryptocurrency Asset Management Platform Steaker, Huang Weixuan, and Three Executives Indicted for Involvement in a Nearly 1.5 Billion Capital Absorption Scheme
Steaker Founder Huang Wei-Hsuan Officially Indicted for Allegedly Raising Nearly NT$1.5 Billion
At just 34 years old, Huang Wei-Hsuan, a notable figure in the blockchain industry, rapidly rose to prominence by founding the cryptocurrency asset management platform Steaker. However, he is now facing charges of illegal fundraising and money laundering alongside three core executives of the company. The Taipei District Prosecutor’s Office has uncovered that the Steaker platform attracted nearly NT$1.5 billion through high-yield investment schemes that claimed to guarantee capital preservation and profit, drawing significant public attention.
Indictment Details
According to reports from China Times, Huang Wei-Hsuan, the head of the company “Steaker,” is formally indicted for allegedly raising NT$1.48543 billion illegally through the digital asset management platform he founded. On the 11th, he was indicted by the Taipei District Prosecutor’s Office for violating the Banking Act and the Anti-Money Laundering Act. He is charged alongside Chief Technology Officer Hsiao Min-Chieh, Chief Marketing Officer Lu Tian-Hsin, and Chief Operating Officer Pan Yi-Ting, with all illegal gains of the company and related individuals being seized.
Charges Under the Banking Act
Steaker touted high returns with guaranteed profits, leading to a rush of investors. Huang Wei-Hsuan, a graduate of the Computer Science Department and Graduate School of National Taiwan University, has been involved in Bitcoin trading and the development of cryptocurrency wallets since his student days. He founded Steaker in 2019, which once became a leader in Taiwan’s digital asset management sector. The platform’s assets under management peaked at over $60 million, equivalent to about NT$2 billion, making him a well-known figure in the blockchain industry.
The indictment states that since its establishment in 2019, Steaker has continuously launched various investment products related to virtual currencies, attracting a large number of investors who invested funds in Bitcoin, Ether, and various stablecoins. The platform’s products were categorized into five investment schemes ranging from conservative to high-risk, with annualized returns claimed to reach 3.5% to 8.8%, enticing investors under the guise of capital preservation and profit.
The Crisis Triggered by FTX’s Collapse
In November 2021, the U.S. cryptocurrency exchange FTX filed for bankruptcy protection, and Steaker claimed that approximately $10 million of its assets were exposed to FTX. Following this incident, Steaker began to restrict withdrawals for some investors, leading to dissatisfaction and panic. Many believed they had been deceived and reported Huang Wei-Hsuan to the authorities, accusing him of fraud and illegal fundraising.
On December 21, 2021, law enforcement conducted multiple searches of Steaker’s offices and interviewed Huang Wei-Hsuan and five employees. Due to concerns of flight risk, evidence destruction, and collusion, Huang was detained, with the North District Court approving his detention and prohibiting contact with others for 51 days. He was later released on bail of NT$3 million with restrictions on his travel. Other executives were released on bail amounts ranging from NT$250,000 to NT$500,000.
Concerns Over the Legality of Steaker’s Investments
Is the legality of Steaker’s investment in question? The court’s ruling on illegal fundraising will have significant implications for Taiwan’s virtual currency regulations!
Risk Warning
Investing in cryptocurrencies carries a high level of risk, as their prices can be extremely volatile, and you may lose your entire principal. Please assess the risks carefully.
