Steaker platform founded by Huang Wei-hsuan is prosecuted by Taipei District Prosecutors Office, raising 1.48 billion yuan in three years

Once hailed as a pioneer of Taiwan’s cryptocurrency industry, Huang Wei-hsuan, the founder of digital asset management platform Steaker, was formally indicted by the Taipei District Prosecutors Office in April 2024 on charges including illegal fundraising and violations of the Banking Act. This legal turmoil not only exposed the dark secrets behind high-profit investment schemes but also sounded an alarm to the entire industry. According to investigations by the prosecutors, Steaker attracted a huge amount of funds over just three years from 2019 to the end of 2022, with an annual interest rate equivalent to NT$1.48 billion.

From Emerging Entrepreneur to Defendant: Huang Wei-hsuan

Currently 34 years old, Huang Wei-hsuan has a background in computer science from National Taiwan University and showed early enthusiasm for the cryptocurrency industry. He previously worked as a software engineer at a well-known tech company and later served as Vice President at Secret Silver Technology, gaining considerable industry experience. In 2019, Huang decided to establish Steaker, which promoted the value proposition of “helping users flexibly allocate virtual assets and generate on-chain income.” Within just two years, the platform’s assets grew to US$50 million, making it one of the most watched startups in Taiwan’s crypto scene.

However, this halo faded dramatically after FTX filed for bankruptcy in November 2022. Huang and his team transferred Steaker users’ assets to his personal wallet on FTX. When this globally renowned exchange experienced a liquidity crisis, Steaker also faced a liquidity crunch. Investors, discovering withdrawal difficulties, began reporting, prompting law enforcement agencies to intervene and investigate.

Risks Hidden Behind an 88% Annual Interest Rate

Prosecutors’ detailed investigation revealed the full picture of Steaker’s investment scheme. Since its inception, the platform launched five categories of investment products, classified by risk level as “Conservative,” “Steady,” “Risk Level 1” to “Risk Level 3,” with annual interest rates ranging from 3.5% up to 88%. Such a stark difference in interest rates should have served as a warning to investors, yet it still attracted large amounts of capital. Mainstream cryptocurrencies like USDT, USDC, BUSD, DAI, Ethereum, and Bitcoin were the primary sources of funding for the platform.

Further tracking of these funds showed that Huang Wei-hsuan used user assets for strategic trading and high-yield lending arbitrage, with some funds diverted for personal use—including paying personnel costs and operational expenses for another company owned by Huang, called Yadoke. This mixing of assets and obscuring of fund flows ultimately provided strong evidence for prosecutors to establish illegal deposit-taking operations.

Judicial Rulings and Industry Warnings

The Taipei District Prosecutors Office ultimately determined that Huang Wei-hsuan, Steaker CTO Shu Min-jie, CMO Lu Tian-xin, and COO Pan Yi-ting, without approval from regulatory authorities, launched investment schemes under the guise of capital preservation and profit guarantee, publicly raising funds, constituting violations of the Banking Act’s illegal deposit-taking offense. Steaker’s parent company, Steider Co., was also fined.

Notably, while prosecutors found Huang and others suspected of illegal fundraising and law violations, they did not file charges of fraud. The reason given was that before FTX’s bankruptcy, Steaker investors could check their account balances and freely transfer assets, which did not meet the legal criteria for fraud. This ruling reflects the gray area in cryptocurrency regulation—despite clear illegal fundraising activities, the unique technical features of digital assets make it difficult to apply traditional fraud charges.

This case serves as a warning to Taiwan’s crypto industry: high returns often come with unacceptable risks. Huang’s case reminds investors to be cautious of platforms promising extraordinary profits, and also calls on regulators to strengthen oversight and regulation of such operators.