REGULATION

Exchange partner Alfred Wallet implicated in money laundering of 30 billion NTD, 26 people arrested

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Exchange partner Alfred Wallet implicated in money laundering of 30 billion NTD, 26 people arrested

ACE, a partner of a leading exchange, is suspected of being involved in illegal activities with its projects "Virtual Currency Prepaid Card A+CARD" and "Alfred Wallet." The Taichung City Criminal Investigation Bureau stated that the illegal fund flow exceeded 33 billion NTD, leading to the arrest of 26 individuals from last year until now.

ACE Elite Exchange

According to reports from SETN and UDN News, the Taichung City Criminal Investigation Bureau cracked down on a counterfeit currency scam in 2022, which was later found to involve physical stores dealing with virtual currencies, all of which used "A+CARD" and "Alfred Wallet."

These two virtual currency recharge cards and wallets were found to be associated with the ACE Elite Exchange, using legitimate exchanges as a cover to facilitate money laundering in an illegal manner, with illicit funds totaling up to 33 billion NTD.

Police have arrested 26 individuals, with 6, including a man surnamed Hsu, being detained and denied visitation.

Alfred Wallet website ceased operations in January this year following the ACE case.

Alfred Wallet

The Taichung City Criminal Investigation Bureau pointed out that scams like the "Golden Wealth Academy" and "Stock Wisdom Business School" lured victims under the pretext that "physical store purchases are more secure," recommending victims to make appointments to buy virtual currencies at physical stores.

These stores usually do not operate regularly but operate on an appointment basis, where only "A+Card" virtual currency recharge cards can be purchased with cash on-site, which can only be stored in the "Alfred Wallet."

However, the police stated that the purpose of these physical stores was to serve as money laundering fronts, using Alfred Wallet to obscure the source and destination of criminal proceeds through multiple break points, allowing the fraud ring to successfully obtain criminal proceeds.

Analysis revealed that "Alfred Wallet" and "A+CARD" have circulated 11 billion USDT coins, approximately 33 billion NTD, within 2 years since their launch, and their structure with the ACE Elite Exchange is as follows:

  • Developed and maintained by ACE Elite Exchange partners, "Alfred Wallet" and "A+CARD."

  • Recruitment of affiliate distributors is handled by subsidiary Fuhai Digital Innovation Co., Ltd.

  • Through the resources of ACE Elite Exchange, a significant amount of illicit funds is further transferred.

The Taichung District Prosecutor's Office is expected to conclude this case today.