Taiwan nabs ACE Exchange boss for multi-million dollar fraud

abdelaziz Fathi

David Pan, the founder of ACE Exchange, one of Taiwan’s largest cryptocurrency exchanges, has been arrested on charges of fraud.

According to a report from Liberty Times, the Taipei City police detained Pan and 13 other individuals following investigations that uncovered illegal gains amounting to NT$200 million ($6.4 million).

The arrest, part of a broader crackdown, included raids at multiple locations, including the ACE Exchange office. Authorities seized NT$111.52 million ($3.6 million) in cash from the residence of a co-conspirator surnamed Lin and cryptocurrencies worth over NT$100 million. The total value of the seized assets surpassed NT$200 million.

Pan and Lin are accused of engaging in fraudulent activities for three years, using social media to promote false adverts and lure investors into buying worthless cryptocurrencies, including MOCT.

ACE Exchange clarified in an official statement that any alleged illegal actions were related to the “token project side” and did not impact the exchange’s operations. ACE President Wang Chenhuan announced that the exchange would delist the MOCT/TWD trading pair on January 8 and is ready to fully cooperate with the ongoing investigation.

A spokesperson for ACE Exchange indicated that the arrested suspects were not employees of ACE, and though Pan founded the company, he hasn’t been involved in daily operations since 2022. The exchange is currently cooperating with the police as a witness.

Founded in 2018, ACE Exchange is a key player in Taiwan’s cryptocurrency market, alongside MaiCoin and BitoGroup. Considering the recent developments, ACE is conducting regular market reviews and delisting tokens that do not meet its criteria. The exchange also mentioned that many token holders had previously redeemed their tokens for various goods and services, like meals or hotel accommodations.

Earlier in November, the Taipei District Prosecutors Office (TDPO) detained Chang Tung-ying, the chief partner of JPEX Taiwan on charges of fraud related to the cryptocurrency exchange.

During their investigation, Taipei prosecutors conducted searches at nine locations related to JPEX. They also summoned Chang and three other individuals as alleged suspects. Chang and JPEX lecturer Shih Yu-sheng, also known as Shi Yu, have been identified as suspects in the case for violating the Banking Act and the Money Laundering Control Act.

The other defendants, including JPEX salespersons Liu Chien-fu and Niu Keng-sheng, were released. According to the report, Liu was released on bail of 50,000 new Taiwan dollars ($1,550), while Niu, a registered individual responsible for JPEX Taiwan, was released after questioning.

Additionally, the report mentioned that Nine Chen, a Taiwanese celebrity and singer who had previously served as a brand ambassador for JPEX, was summoned by prosecutors. Initially called as a witness, prosecutors later named Nine Chen as a defendant in the case.

 

  • Read this next

    Institutional FX

    Cboe to launch MSCI-based options and volatility indices

    “We are excited to expand our Cboe-MSCI toolkit with additional index options and volatility indices – an enhancement that will not only broaden our customers’ product choice, but also enrich the ways they interact with and analyze the global markets.”

    Fintech

    Traxys taps Quantifi for risk management in commodities trading

    “We wanted to take a more sophisticated approach to risk management and have a consolidated view of risk exposures across our global operating model. Quantifi was our preferred choice as it has a track record of success in the commodities markets.”

    Digital Assets

    Startale Labs Secures Funding for Web3 Expansion

    Startale Labs, a leader in Japan’s Web3 development, including Astar Network and Startale Web3 Cloud, has raised an additional $3.5m from UOB Venture Management and Samsung Next. This seed extension round boosts their total seed funding to $7m, following a $3.5m investment from Sony Network Communications in June 2023.

    Retail FX

    XS.com acquires South African broker Ubutyebi Financial Services

    XS.com, the multi-regulated financial services provider, has made a strategic move to expand its presence in Africa by acquiring Ubutyebi Financial Services, a licensed Financial Service Provider (FSP) in South Africa regulated by the Financial Sector Conduct Authority (FSCA).

    Digital Assets

    Hong Kong advances legislation on stablecoins and crypto trading

    Hong Kong is moving forward with legislation to regulate stablecoins and crypto over-the-counter (OTC) trading in the latest effort to develop a legal framework to service the city’s digital-asset industry.

    Digital Assets

    Do Kwon to be extradited to US as South Korea request overturned

    Terraform Labs co-founder Do Kwon is set to be extradited to the United States to face fraud charges related to massive losses suffered by U.S. investors due to its algorithmic stablecoin collapse.

    Retail FX

    Prop firm Instant Funding pauses US accounts, citing ThinkMarkets ban

    Proprietary trading firm Instant Funding has become the latest retail platform to halt onboarding new US clients, citing a recent decision by their partner broker, ThinkMarkets.

    Retail FX

    Funded Trader and Alpha Capital switch to cTrader, Lark Funding to DXTrade

    Proprietary trading firms Lark Funding and Alpha Capital have both announced changes to their operations that mainly affect their business with US clients.

    Fintech

    Top 5 Most Reliable KYC Technology Providers

    The financial sector’s trade evolution has led to the emergence of several financial markets that provide excellent opportunities for wealth creation. However, it has also given rise to many fraudulent organisations that attempt to steal money from traders. KYC providers developed and offered KYC technology to combat criminal activity in the field of trading and investing.

    <