David Pan, the founder of Ace Exchange, a local cryptocurrency trading platform, is one of six suspects indicted for Fraud by the Taiwanese authorities.
According to prosecutors ‘ official announcement, Pan was one of six suspects in an April 8 indictment. The prosecution accused him of fraud and money laundering, resulting in losses of $10.6 million ($340 million) in New Taiwan dollars.
Following raids on multiple places, including Ace’s headquarters, the Taipei City police detained Pan and 14 other people allegedly implicated in the investigation in January 2024.
The prosecution discovered that Pan was one of the individuals connected to the phoney cryptocurrency wallet service known as “Alfred” or “Afu wallet” and an associated crypto card.
Prosecutors claim that the individuals deceived clients using phoney investment organizations and offline over-the-counter exchanges to offer a service based on a traditional high-reward promise model.
The scammed investors discovered that their accounts were suspended or could not withdraw their money after depositing.
Reports have been that a Taiwanese court ordered the seizure of the defendant’s property, with some seized goods valued at least 3.5 million TWD, or $110,000.
Ace Exchange released a statement on April 8 in response to the charges, restating that Pan and his fraudulent activities were unrelated to the platform because he supposedly stopped being involved in day-to-day operations in 2022.
“Ace Exchange did not launch the wallet product; rather, it was developed by a third-party team entrusted with its development by the former director Pan,” the company stressed. It further stated that Ace was assisting the local law enforcement.
The following was spoken in the exchange:
“Please rest assured that the trading and operating conditions of Ace Exchange are normal. We ensure the security of user assets, and deposit and withdrawal services for all cryptocurrencies and New Taiwan dollars operate smoothly.”
Taiwan-based Ace Exchange is a less well-known centralized cryptocurrency exchange. Launched in late 2018, the platform trades about $14 million daily, according to CoinMarketCap data.
Ace Exchange has a trust score of 2.78 out of 10, making it a “high-risk cryptocurrency exchange” based on Traders Union data.
