The founder of the Taiwan Blockchain Association is involved in a fraud case and has been officially indicted by the prosecution.
Liu Ting-wei, the founder and first chairman of the Taiwan Blockchain Association, was indicted by the Taipei District Prosecutor's Office for allegedly conspiring with Chen Cheng-yang, the head of the Fu Fu De Zheng studio, in a fraud case, facing charges of aggravated fraud and violation of banking laws.
Liu Ting-wei founded the Taiwan Blockchain Association in August 2020 (the association's website is now closed) and served as the first chairman until June 2023. The prosecution indicated that he allegedly instructed the then-secretary-general and supervisors of the association, who were unaware, to inject 1.1 and 1.09 Ethereum as the cost to create the MEKA coin, then commissioned Chen Cheng-yang to promote it through an unsuspecting salesperson.
The two falsely claimed that the company collaborated with the French MEKA company to issue virtual assets and stated that it was related to the 'Gundam NFT' MekaVerse, asserting that an online game would be launched in the future, at which point the value of MEKA coins would grow by over 100 times.
Subsequently, Liu Ting-wei held an investment briefing, promoting SBC and DTT coins tied to online games such as 'Sky Thief Group' and 'Desert Paradise 2'. (Crypto City) editor Max also received promotional materials provided by the team, stating that the two games would be listed on major domestic and international exchanges in June 2022, but ultimately, along with subsequent scheduling plans, game launches, online and offline gatherings, and various promised activities were not fulfilled.
Even from the promotional materials of January 2022, it can be seen that the ICO price for the two virtual currencies was 0.00001 ETH, directly claiming that the price would continue to rise over time:
The price after March 1 is 1 = 0.000012 ETH
The price after May 1 is 1 = 0.0000156 ETH
Falsely claiming that after the game is launched, it will support the market and increase the value of the game tokens by over 50%, misleading investors to mistakenly believe that there is a real opportunity for token value increase and proceed with investments.
The prosecution found that after acquiring Ethereum, Liu Ting-wei and Chen Cheng-yang, aside from paying employee performance bonuses and game maintenance costs, transferred the remainder to Liu's overseas exchange custodial wallet and then converted it to $USDT, which was subsequently transferred to a virtual wallet under his wife's name.
Investors realize they have been deceived and report to the police; money flow investigation reveals money laundering methods
Investors later discovered that the French MEKA company had not issued any games, and no exchanges were willing to trade MEKA coins, while the two online games were also not continuously operated, leading to a collapse in the value of SBC and DTT coins to worthlessness, prompting them to realize they were deceived and report to the police.
The prosecution discovered in the money flow investigation that Liu Ting-wei and Chen Cheng-yang laundered the Ethereum obtained through complex conversion programs, first transferring it to several of Liu's non-custodial wallets, then to an overseas exchange's custodial wallet, converting Ethereum to Tether, and finally transferring it to a virtual wallet under Liu's wife's name, with some exchanged for New Taiwan Dollars.
Ironically, when the Taiwan Blockchain Association was established, Liu Ting-wei publicly declared that he hoped the public could better understand blockchain expertise and reduce cryptocurrency fraud through education, yet he became the main suspect in a fraud case.
After the Taipei District Prosecutor's Office concluded the investigation, it determined that Liu Ting-wei and Chen Cheng-yang were involved in aggravated fraud, illegal banking operations related to receiving deposits, and money laundering offenses under the Money Laundering Prevention Act, and they were prosecuted for violating banking laws. As for Liu's wife, executives of the blockchain association, and five employees of the Fu Fu De Zheng studio, they were not prosecuted due to lack of knowledge.
Education fraud case comes to light, self-help group files collective lawsuit for compensation
In addition to the virtual currency fraud case, the CBA Asia Blockchain Academy founded by Liu Ting-wei has also erupted into educational fraud controversies. Last October, several course students formed a self-help group to file a fraud lawsuit at the Taipei District Prosecutor's Office, accusing Liu Ting-wei of promising students that purchasing the analyst course would provide opportunities for high-paying analyst positions in the company, claiming that analysts within the company had a base salary of NT$60,000 and high bonuses.
The representative of the self-help group stated that over 50 students, after spending between NT$100,000 to NT$300,000 on tuition for courses, found that the content of the analyst course provided by Liu Ting-wei was superficial and not as professional as expected. What was even more frustrating was that Liu Ting-wei allegedly evaded responses. Ultimately, 14 students decided to file a fraud lawsuit, seeking a total compensation of over NT$3 million.
Currently, the courses at the CBA Asia Blockchain Academy are still available; (Crypto City) confirmed that the course prices are as follows:
Introductory course: No longer available
Bollinger Bands Strategy Application Course: NT$9,999
Practical Trading Techniques Course: NT$19,999
One-on-One Online Trading Analysis Course: NT$39,999
Advanced Strategy Course: NT$150,000
Elite Course: NT$360,000
Media reports sparked controversy, with netizens questioning biased protection.
It is noteworthy that after Liu Ting-wei was officially indicted, some netizens questioned the stance of certain blockchain media in their previous reports on the CBA Academy controversy. Netizens pointed out that some media chose to directly publish BuckChaf's statement, describing the victims as 'provoking lawsuits', 'trying to evade payments', 'deliberately causing trouble', and even labeling reporting and refunding as fraud.
Netizens questioned this reporting method as 'secondary victimization', suppressing the voices of victims while siding with the fraudsters, and demanded that relevant media apologize and retract their articles.
With Liu Ting-wei officially indicted, this case not only exposes the complex methods of cryptocurrency fraud but also sparks discussions about the balance and verification responsibilities of media reporting. The prosecution states that the investigation will continue to trace relevant financial flows to ensure the protection of victims' rights.
(Crypto City) also reminds everyone that fraud methods in the cryptocurrency industry are numerous. Whether it's a 'new currency' claiming to cooperate with international brands, high-reward 'chain game investments', or guaranteed high salaries for 'blockchain courses', all deserve our more cautious attention. Always listen, watch, and ask more before investing, and do not let your assets become victims of scams. Stay alert and protect yourself.
This article is a collaborative reprint from: Crypto City
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