Fake Forex Broker ACDEX Defrauds 1.4 Billion NTD, Registered Company Claims to be a Decentralized Exchange
After the presidential election in Taiwan, law enforcement agencies have revealed more law enforcement achievements. A company posing as an overseas forex broker has raised 1.4 billion New Taiwan dollars, although it has nothing to do with cryptocurrencies and DeFi. However, the registered company claims to be a decentralized exchange in an attempt to deceive the public.
(ACE Investigation: Scammer Lin Genghong and model lawyer Wang Chenhuan are the masterminds of the air coin fraud, and Pan Yizhang is the head of the dummy.)
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The Great Reveal of the Financial Scam: Former CEO of Agus and his accomplice implicated in raising 1.4 billion New Taiwan dollars
Registered company claims to be a decentralized exchange
Taipei District Prosecutor’s Office conducts extensive search and asset seizure
Invited celebrity Tsai Shanghua to host the press conference
More implicated companies exposed: Fungsheng Fund and its distributors suspected of fraud
According to reports, the former CEO of Agus Exchange, Xu Xianzhong, and his accomplice are accused of using the identity of the fake Australian forex broker ACDEX to carry out a large-scale fraud through the “FINDEX.WIN” website created by the Samoan company Dahua Xinrui. They promised investors “dual-position hedged forex interest rate difference trading,” opening both long and short positions on the same target to profit from the spread. They falsely claimed a high annual return rate of 14% to attract thousands of investors, involving a total fund of 48 million US dollars.
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The Taipei City Investigation Bureau stated that the fraud ring registered in Hong Kong as “Agus Exchange” coincidentally matched the Australian forex broker ACDEX. And “Decentralized Exchange” is also the meaning of decentralized exchange in British English. It has nothing to do with blockchain technology, but it is unreasonably associated with this company name.
Under the command of the Taipei District Prosecutor’s Office, the Taipei City Investigation Bureau and the Criminal Investigation Bureau carried out a large-scale search operation. Assets worth about 115 million yuan were seized during the operation. 25 relevant personnel were summoned for questioning based on suspected violations of the Banking Act and the Securities and Investment Trust and Consulting Act. Among them, 4 people were detained and forbidden from meeting after interrogation.
The fraud group even impersonated ACDEX and held an event called the “Asia-Pacific Regional Operation Headquarters Establishment and International Fund Strategic Cooperation Press Conference” at the Taipei Mandarin Oriental Hotel in May 2020, inviting famous host Tsai Shanghua to attend. Although Tsai Shanghua was not involved in this case, his social media sharing increased the credibility of the event.
In addition to Agus Exchange, the foreign company Fungsheng Global Capital Fund Management Co., Ltd. is also accused of illegally selling funds and falsely claiming that these funds will be invested in “dual-position hedged forex interest rate difference trading.” However, in reality, these funds fell into the hands of the fraud ring and were not invested as claimed.
ACDEX
Algo Cypher
Agus
Dual-position hedged forex interest rate difference trading
Further reading
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SEC Claims Bitcoin’s ETF Increases Transparency, Reaffirms Disapproval of “Other” Cryptocurrencies
