Highlights of the Story
- 32 individuals in Taipei are facing fraud charges, with potential 20-year sentences.
- The total losses from the fraudulent activities have surged to 800 million NT$.
- Ace Exchange has distanced itself from its founder, David Pan, who is among those indicted.
The Taipei District Prosecutors’ Office in Taiwan has pressed charges against 32 individuals in the cryptocurrency industry for fraud and money laundering. Notable figures include David Pan, the founder of JackIssue, and Lin Keng-hong, linked to Ace Exchange. The main suspects may face a 20-year prison term, a significant development in the legal proceedings.
Police Arrest 15 Individuals in Taipei Following Raid on Ace Exchange
The indictments expose a sophisticated fraud scheme that has duped over 1,200 investors, leading to losses estimated at around 800 million New Taiwan dollars (\(24.56 million), surpassing the initial 340 million NT\( (\)10.6 million) estimate. Wang Chen-huan, a prominent lawyer and Ace Exchange’s chairman, is among the key accused and could potentially face a 12-year prison sentence if found guilty. His involvement as a legal advisor added credibility to the fraudulent activities.
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In January 2024, Taipei City Police apprehended David Pan and 14 others after an extensive probe. The crackdown targeted various sites, including Ace Exchange’s main office, revealing ties to a fraudulent crypto wallet service known as “Alfred” or “Afu wallet,” alongside associated cryptocurrency cards.
Ace Exchange Denounces Ties with Founder Pan
In 2019, the suspects aggressively promoted various token investments, such as NFTC tokens and bitnature coins, through deceptive white papers and promotional materials. Their aim was to establish Ace Exchange as the premier blockchain ecosystem for crypto trading in Asia. However, investors faced losses as their tokens depreciated without the ability to convert them to fiat currency, contrary to the promised returns.
These financial discrepancies led to multiple investor litigations, culminating in the current charges. The court has seized the defendants’ assets, valued at a minimum of 3.5 million NT$ (110,000), to provide some restitution to the deceived investors.
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In response to the indictments, Ace Exchange issued a statement on April 8 clarifying that David Pan has no affiliation with Trader’s Paradise, has been disconnected from daily operations since 2022, and that his alleged fraudulent actions are unrelated to the current platform operations. Despite this clarification, Ace Exchange’s reputation remains tarnished.
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Maxwell, a crypto-economic analyst and Blockchain enthusiast, is dedicated to exploring the potential of decentralized technology. He covers blockchain, cryptocurrency, tokens, and related topics extensively for various publications. Maxwell’s mission is to educate about this revolutionary technology and its impact on economic freedom and societal well-being.
The content provided expresses the author’s personal opinions and is influenced by market conditions. Conduct your research before engaging in cryptocurrency investments. The author and publication are not liable for your financial choices.