A major crypto scandal is unfolding in Taiwan, where four top figures from the digital asset platform Steaker are now facing serious criminal charges.
Authorities allege the company raised tens of millions of dollars through unapproved crypto investment plans, in clear violation of local financial laws. The case, now being handled by the Taipei District Prosecutors’ Office, centers on accusations that the company operated without the necessary banking licenses while collecting investor funds.
At the heart of the investigation is Steaker’s founder, Huang Weixuan, along with three other senior executives who played key roles in the company’s operations. Prosecutors are not only targeting the individuals but are also seeking penalties against the company itself under financial regulations typically reserved for unauthorized deposit-taking schemes.
Steaker reportedly launched a series of investment programs in 2019, advertising unusually high annual returns that stretched up to 88%. These offers, made in cryptocurrencies such as Bitcoin, Ethereum, and Tether, were presented as low-risk and allegedly protected by a security fund established in collaboration with a cybersecurity firm. However, financial watchdogs claim this structure mimicked traditional deposit-taking behavior, something that’s tightly controlled under Taiwan’s legal framework.
Further complicating matters, investigators claim the capital raised was eventually moved to crypto exchange FTX, into wallets managed by Huang. There, the funds were used for trading strategies aimed at generating profits through lending and arbitrage. But when FTX collapsed in November 2022, those assets vanished, leaving Steaker unable to meet its financial obligations to investors.
Documents also suggest that some of the digital assets were redirected before the crash, used for things like employee salaries and payments to third-party traders—raising more questions about internal fund management.
Responding to the allegations, Huang posted a statement online asserting that Steaker’s use of cross-chain assets doesn’t fall under the traditional definition of deposit-taking or money laundering. The company has also pushed back against regulators’ move to classify crypto assets as equivalent to fiat currency under current banking laws—an interpretation that could reshape how digital assets are treated in Taiwan moving forward.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/asian-crypto-company-charged-over-illegal-investment-scheme/