Current Date: 22 Feb, 2024

Founder Of Taiwanese Crypto Exchange ACE Arrested For Fraud

David Pan, founder of ACE crypto exchange, and 13 other suspects have been arrested on fraud allegations. Police reportedly seized assets worth at least $6.4 million in illegal gains. 

According to local media reports, the founder of Taiwanese crypto exchange ACE, David Pan, was arrested on January 4 for alleged fraud. 

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13 Others Arrested

Local media Liberty Times reports the Taipei City police arrested David Pan, founder of one of the largest crypto exchanges in Taiwan, along with 13 other suspects. The arrests occurred following raids at several locations, including ACE’s headquarters. Police seized assets worth around 200 million Taiwanese dollars ($6.4 million) in illegal gains. Authorities allege the suspects deceived investors with fraudulent crypto claims.   

ACE posted an update to X (formerly Twitter) saying (translated):

“You may have seen the news. ACE clarifies here that this behavior is the behavior of the token project side and has nothing to do with the operation of the exchange. Operations are currently normal. If you encounter problems with currency withdrawals, you can inquire through our official channels.” 

According to the report, police claim Pan and a co-conspirator with the surname Lin used “fake advertisements” to deceive over 100 investors over the past three years. During the raids, police seized NT$111.52 million in cash ($3.6 million) from Lin’s residence and crypto worth over NT$100 million. 

ACE Cooperating With Authorities And Will Remove Disputed Assets

In a statement, ACE president Wang Chenhuan and his team said:

“Regarding today’s media reports on ACE, it is due to the fact that some currencies listed in 2019 were involved in illegal activities.

Basically, ACE is cooperating with the investigation as a witness. Some media reported that our employees were involved in the case, which is not true. We have sent a letter to the media to correct it. President Wang Chenhuan has been committed to the exchange's legal compliance since he took over as president in September 2012.”  

The statement further said Chenhuan would fully cooperate with the investigation and remove the disputed currency from the exchange following Taiwan regulations. 

ACE is one of three major crypto trading platforms in Taiwan, along with MaiCoin and BitoGroup. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Excellence Chukwuma Chukwunaedu

Excellence Chukwuma Chukwunaedu

I enjoy marketing, technology and business. I help businesses and brands connect with their ideal customer profiles and build products that excite them and solve their problems.