ACE's application for temporary agency was rejected! May affect employee salary payment

"ACE Ace Exchange", one of the top three exchanges in Taiwan, was kicked out for fraud on January 4 this year. At the beginning of the year, it was revealed that its former managers Pan Yi-chang and Wang Chenhuan were suspected of cryptocurrency fraud, illegally absorbing hundreds of millions of dollars, a total of 11 people. The person involved was detained and banned, and 111.52 million yuan in cash and 108 million yuan in cryptocurrency were seized.

🛎️Extended reading: The former head of ACE was involved in fraud and defrauded 1 billion in 3 years! Use legitimate exchanges to cover "junk coins", and victims can fill in a form to assist in the investigation

According to the judgment, Wang Chenhuan, the person in charge of the company, is the sole director and holds all the shares. There is no possibility of by-electing directors at the shareholders' meeting. However, because Wang Chenhuan was detained, the company was unable to operate normally, including the obstruction of external use of seals, which led to the suspension of the company's business. Bank funds cannot go in and out, and even employee salaries or system and operating expenses cannot be paid.

Recently, Hiro Wang, the former chief operating officer of ACE exchange, hoped to apply to the court as a stakeholder to appoint an interim manager of ACE, but was rejected by the court, causing discussion among community users.

The court rejected the claim. What was the reason?

Wang Hongsheng's claim was rejected. The court stated that the conditions for selecting an interim manager are that "the board of directors fails or is unable to exercise its powers", causing damage to the company's operations, and there are urgent and specific matters that need to be handled by the directors personally. The need for an interim administrator.

As for the financial issues raised by Wang Hongshu, whether it was a detailed summons to be paid or a request for advance payment on behalf of ACE, the amount did not reach the threshold of 300,000 yuan that required director approval.

In addition, although the total employee salary of ACE Company in January 2013 was as high as 2.55 million yuan, it can be seen from the LINE conversation records that the CEO is also responsible for the approval and release of monthly routine salaries. Now that Wang Hongsheng claims to be the CEO of ACE, there should not be much problem with the company's management and operations.

However, Wang Hongsheng pointed out that after the cooperative bank (KGI Bank) learned that the person in charge of ACE was involved in a criminal case, it had doubts about the source of the handling fee and restricted ACE from transferring funds from the trust account to the ACE bank account, so it was unable to pay wages as scheduled.

However, the court pointed out that this situation was mainly caused by the bank's doubts about the source of the handling fee, and did not belong to the incompetence of the company's board of directors. It was not directly related to whether the board of directors could exercise its powers, so it ultimately rejected the claim.

ACE response: Operations are normal

ACE Exchange also issued a statement immediately, emphasizing that all operations are normal, and the application process is only to implement corporate governance to ensure that the operating status is not affected by external forces, and there are no financial-related problems.

Currently, ACE Exchange users’ Taiwan dollar assets are protected by KGI Bank’s trust services, and the recharge and withdrawal services for all cryptocurrencies and New Taiwan dollars operate smoothly.

The ACE team also stated that it will reserve all legal rights to pursue any reputational damage caused by false accusations against ACE Exchange and its employees.

Review editor: Gao Jingyuan

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