Another FTX victim? Taiwan’s Steaker platform executives face charges

Taiwan’s authorities have charged four senior executives at the digital asset management platform staker, who allegedly raised $1.48 billion ($45.8 million) through a fraudulent cryptocurrency investment scheme. The Taipei Prosecutor’s Office confirmed the claim on Thursday, pointing to the Banking Act regulations regarding the acquisition of deposits without a license.

Steaker founder Huang Weixuan, Chief Technology Officer Xiu Minjie, Chief Marketing Officer Lu Tianxin, and Chief Executive Pan Yiting have committed crimes against operations.

The prosecutors have requested the court to fine the company under the Banking Act. However, Huang, released on bail, also faces additional charges for financial misconduct, including investor funds.

It is said that the stakers raised the funds with a promise of up to 88% returns

According to prosecutors, Steaker has been operating multiple crypto investment plans since 2019, with investors returning returns ranging from 3.5% to 88% per year. The company partnered with security company Cybavo to raise funds in Tether, Bitcoin and Ethereum, claiming that the investment is protected by the User Asset Security Fund, or SAFU.

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The claim claims that Steaker has guaranteed principal and profit protection to investors. This argues that practice regulators interpreted it as taking deposits without a proper licence. Over the course of three years, the plan reportedly raised hundreds of millions of dollars in New Taiwan.

Prosecutor: Steaker Investor Funds, Lost in Collapse, sent to FTX

Investigators report that once the investor’s funds reached a certain threshold, they were transferred to their wallets under the control of FTX’s Huang. The prosecutors said these funds were used for profitable transactions and advanced lending to grasp differences in prices.

And when FTX collapsed in November 2022, Steaker lost access to its funds and was unable to meet investor obligations. Additional findings show that some of the virtual assets were redirected from FTX to private currency traders and used to cover the pay of Steaker employees.

Steaker Founder: Is Crypto Assets ‘Deposits’ based on Taiwan Law?

Huang Weixuan responded to the fees in a Facebook post, saying that Steaker’s multi-chain asset flow and operating model should not be classified as money laundering.

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The company also expressed concern about the prosecutor’s interpretation of banking laws, particularly its decision to identify virtual assets with fiat currency under the law.