Taiwan’s Ace Exchange Founder Accused of 10.6M Dollars Fraud, Faces Indictment

Crypto News- In a recent development, David Pan, the brains behind Ace Exchange, a prominent cryptocurrency trading platform in Taiwan, finds himself in hot water as prosecutors move to hold him accountable. Alongside six others, Pan faces indictment as of April 8 on charges of money laundering and fraud, amounting to staggering losses of 340 million New Taiwan dollars ($10.6 million).

Taiwan’s Ace Exchange Founder Accused of 10.6M Dollars Fraud, Faces Indictment

The legal saga began when Taipei City police, in January 2024, apprehended Pan and 14 accomplices following raids on multiple locations, including Ace’s headquarters. Investigations revealed Pan’s connection to the dubious cryptocurrency wallet service known as “Alfred” or “Afu wallet,” alongside a related crypto card.

According to prosecutors, the modus operandi involved luring unsuspecting investors with promises of high returns through offline over-the-counter exchanges and fake investment groups. However, once funds were deposited, investors found themselves unable to withdraw or faced account blockades.

Taiwan Court Orders Seizure of Ace Exchange Founder’s Assets Worth $110,000

In a significant move, a Taiwanese court ordered the seizure of the defendant’s assets, with confiscated property valued at over 3.5 million NT$ ($110,000).

Responding to the indictment, Ace Exchange issued a statement on April 8, vehemently denying any association with Pan’s illicit activities. They clarified that Pan had ceased involvement in day-to-day operations since 2022 and emphasized that the wallet product in question was developed by a third-party team, not affiliated with Ace Exchange.

Assuring users, Ace Exchange reiterated the normalcy of its trading and operational activities, pledging the security of user assets and smooth deposit and withdrawal services for all supported currencies.

Ace Exchange’s Reputation Dented: Labeled ‘High-Risk’ by Traders Union

Ace Exchange, though lesser-known, has been a fixture in Taiwan’s cryptocurrency landscape since its launch in late 2018. However, recent events cast a shadow over its reputation, with Traders Union labeling it a “high-risk cryptocurrency exchange” with a trust score of 2.78 out of 10.

Cointelegraph’s attempts to reach Ace Exchange for further comments on the indictment remain unanswered at the time of publication.