MOCT (魔券幣) Backlashes ACE Exchange! Police Seize Over “1 Billion Yuan” Cash from Mr. Lin’s Residence

The Taiwan virtual currency market recently exploded with a major news story. “ACE Exchange,” a leading exchange, has been exposed for allegedly engaging in large-scale fraudulent activities. This event not only shocked the entire blockchain and cryptocurrency community but also highlighted the legal and ethical risks involved in virtual currency trading.

According to reports, the New Taipei City Criminal Investigation Brigade conducted a raid and search on ACE Exchange, revealing that the former head of the exchange, a man surnamed Pan, and his partner, a man surnamed Lin, had engaged in fraudulent activities. (Note: The current head of ACE is Wang Chenhuan, who took office in September 2023 and also serves as the managing partner of Jianye Law Firm.)

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Table of Contents
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Police seize Lin’s fraudulent proceeds of one billion NT dollars
Social media as a tool for fraud
Comprehensive crackdown and legal action by the police
Statement from ACE Exchange
Police discovered over 100 million NT dollars in cash at Lin’s residence, with a total of approximately 200 million NT dollars in illegal proceeds confiscated. According to police investigations, over the past three years, they deceived over a hundred investors through false advertisements, leading them to invest in worthless virtual currencies.

Lin is accused of using social media platforms such as Instagram and Facebook to publish investment advertisements, using clever rhetoric to induce investors to purchase worthless virtual currencies such as MOCT, NFTC, and BNAT. They claimed that these currencies would be listed on well-known domestic and foreign exchanges and fabricated dreams of quick wealth to increase investors’ trust in these currencies.

The New Taipei City Criminal Investigation Brigade revealed that the individuals involved misled investors into believing that these virtual currencies were the latest technological products with the potential for value appreciation similar to Bitcoin. However, in reality, these so-called investments were merely the purchase of “junk coins” and “air coins” that rapidly lost their value, resulting in significant losses for investors.
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ACE Exchange launched the MOCT trading pair in 2019.
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The police conducted searches at 15 locations in Taipei, New Taipei, Taichung, including the company premises of ACE Exchange, and arrested Lin, Pan, and 14 other individuals (according to ACE Exchange, none of them are ACE employees). At Lin’s residence, the police seized a large amount of cash and virtual currencies, totaling over 200 million NT dollars. The police estimate that the fraudulent proceeds of Lin’s group may exceed one billion NT dollars over the past three years. Currently, Lin, Pan, and their associates are facing charges of fraud, money laundering, and violations of the Banking Act, among others.

This incident serves as a reminder to investors to exercise caution in the virtual currency market and remain vigilant against overly glamorous investment promises. As the investigation progresses, more details are expected to be revealed in the pursuit of justice for investors.

ACE Exchange stated to Chain News:
“Regarding today’s media reports on ACE, it is because individual listed currencies in 2019 were involved in illegal activities. ACE is cooperating with the investigation as a witness, and reports of our employees’ involvement in the case are not true. We have sent letters to the media for corrections. Since President Wang Chenhuan took office in September 2023, ACE has been committed to operating the exchange in a legal and compliant manner. We will fully cooperate with investigations into suspected criminal activities and follow regulations to delist controversial currencies.”

Below is the official statement from ACE:
1. ACE is committed to the safety of user assets, with 100% NT dollar trust and dual protection for cryptocurrencies.
ACE Exchange was founded in 2018, registered in Taiwan, and is the first Taiwan exchange guided by KPMG and Antoun & Hou Law Firm to comply with domestic AML regulations. In 2021, ACE submitted a statement of compliance with anti-money laundering regulations to the Financial Supervisory Commission. ACE also has dual protection, including “Cathay United Bank’s 100% NT dollar deposit trust” and “CYBAVO cryptocurrency wallet system” through Nord Insurance Brokerage, ensuring the custody of customer cryptocurrency assets. Wang Chenhuan, who took office as ACE President in September 2023, is also the managing partner of Jianye Law Firm and is committed to operating legally and compliantly while prioritizing the safety of user assets and complying with relevant laws and regulations in our country.

2. ACE regularly reviews the development and market trading of listed cryptocurrencies to provide users with more diverse choices.
ACE Exchange continuously monitors the development and market trading of all listed cryptocurrencies to provide users with a good trading environment and service quality. ACE Exchange regularly conducts market reviews and comprehensive evaluations of past applications for listing currencies, delisting tokens that do not meet the qualifications, and continuously adds popular tokens to provide users with more choices. If a project involves private placement and sales by non-ACE platform teams, users should pay special attention. (※Risk Reminder: The listing and delisting of currencies have passed ACE’s review, but it does not mean there is no investment risk. Cryptocurrency assets are high-risk investments, so investors should make careful choices and read white papers and other public disclosures to be aware of investment risks.)

3. If there are disputes and violations by project parties, ACE will fully cooperate with investigations and immediately delist to protect users until disputes are clarified.
Effective January 8, 2024 (Monday) at 16:00 (GMT+8), the MOCT/TWD trading pair will be delisted. All open orders will be automatically canceled after delisting, and subsequent delisting will not affect the deposit and withdrawal of the currency. Please be sure to handle your assets during the mentioned period.
ACE will fully cooperate with investigations into disputes and violations by project parties. It has not had any impact on ACE’s operations. It will operate more prudently in the future, strive to maintain its position as one of Taiwan’s top exchanges, and look forward to riding the bull market together with users!

Regards,
Wang Chenhuan, President of ACE Exchange, and the ACE team