Fake forex broker ACDEX scams 1.4 billion TWD, registered company claims to be a decentralized exchange.

After the presidential election in Taiwan, law enforcement agencies have revealed more enforcement results. A company posing as an overseas forex broker has raised NT$1.4 billion. Although unrelated to cryptocurrencies or DeFi, the registered company uses the name of a decentralized exchange in an attempt to deceive. The ACE case investigation: Fraudsters Lin Geng-hong and lawyer Wang Chen-huan are the masterminds behind the air coin scam, with Pan Yi-chang acting as the frontman.

Financial Scam Revealed: Former Agis President and Associates Suspected of Defrauding 1.4 Billion New Taiwan Dollars

According to reports, former president of Agis Exchange, Hsu Hsien-chung, and his associates are accused of using the identity of Australian forex broker ACDEX to carry out a large-scale fraud through the "FINDEX.WIN" website created by Samoa-based Dahua Xinrui. They promised investors "dual-position hedging forex spread trading," opening both long and short positions on the same target to profit from the spread, falsely claiming an annual return rate of up to 14%, attracting thousands of investors and involving funds amounting to 48 million USD.

Registered Company Claims to be a Decentralized Exchange

The Taipei City Investigation Bureau stated that the fraud ring registered "Agis Exchange" Algo Cypher Decentralised Exchange in Hong Kong, with the abbreviation coincidentally matching Australian forex broker ACDEX.

Decentralised Exchange is also British English for a decentralized exchange. Despite having no relation to blockchain, the company was given such a name.

Taipei District Prosecutors' Office Mobilizes Forces for Raids and Asset Seizures

Under the command of the Taipei District Prosecutors' Office, the Taipei City Investigation Bureau and Criminal Investigation Bureau carried out large-scale search operations. Assets worth approximately 115 million NTD were seized, and according to suspicions of violating banking laws and securities and investment trust consulting laws, 25 individuals were questioned, with 4 being detained after interrogation.

Celebrity Chai Shang-hua Invited to Host Press Conference

The fraudulent group even impersonated ACDEX and held an event titled "Establishment of Asia-Pacific Regional Headquarters and International Fund Strategic Cooperation Press Conference" at the Mandarin Oriental Taipei in May 2020, inviting renowned host Chai Shang-hua to attend. Although Chai Shang-hua was not involved in the case, her social media shares added credibility to the event.

More Companies Involved Exposed: Fengsheng Fund and Its Distributors Suspected of Fraud

In addition to Agis Exchange, foreign company Fengsheng Global Capital Fund Management was also accused of illegally selling funds, falsely claiming that these funds would be used for "dual-position hedging forex spread trading." However, the funds actually fell into the hands of the fraud ring and were not invested as claimed.