Taiwanese authorities have indicted David Pan, the founder of Taiwan’s digital assets trading platform ACE Exchange, for his alleged involvement in a crypto-related fraud case. The defendant, along with six other suspects, is currently facing charges of money laundering and other crimes stemming from losses of 340 million New Taiwan dollars valued at around $10.6 million.
Based on a recent announcement, prospectors filed the accusation against Pan on April 8, after his apprehension in January 2024.
ACE Exchange Founder Indicted for Crimes
During a nationwide police operation led by Taipei City authorities, the founder of ACE was among the 15 people apprehended during simultaneous raids at various sites, including ACE’s main office.
Prior to conducting the search, law enforcement uncovered information about a digital wallet named “Alfred” or “Afu wallet”, which was created by Pan and his accomplices specifically to deceive investors through cryptocurrency transactions.
During their probe, the Taiwanese law enforcement discovered that this particular group provided an enticing offer-based service through traditional in-person transactions and bogus investment networks.
Using deceitful investment proposals, Pan and his accomplices illegally broke money laundering regulations in the country. The authorities reported that over 160 people unwittingly became victims of this scam.
The investors learned, to their dismay, that they had been defrauded when the investment platform refused to process their withdrawal orders. Additionally, according to law enforcement, the investors found themselves unable to access their accounts, leaving them powerless as their funds disappeared.
A Taiwanese court order recently surfaced, granting the seizure of the defendant’s property and over $110,000 worth of their assets.
ACE Detaches Itself from Indicted Founder
In response to the indictment on April 8, ACE released a statement clarifying that Pan’s alleged fraudulent actions had no connection to their crypto platform. The statement explained that Pan had stepped down from his role in the platform’s daily management in 2022.
Additionally, it was pointed out that there is no link between the questionable wallet service and ACE, as the wallet was either created by or given approval from ACE.
The founder’s legal issues haven’t disrupted the business operations or trading activities of the company, as stated by the company itself.
Additionally, ACE emphasized its dedication to safeguarding users’ funds and providing uninterrupted deposit and withdrawal functions for all cryptocurrencies and New Taiwan dollars.
In the crypto market of Taiwan, the exchange was launched around 2021. It is believed that approximately $14 million worth of transactions occur on this platform daily. However, despite being separate from its founder, Traders Union has categorized it as a “high-risk cryptocurrency exchange” with a trust rating of only 2.78 out of 10.
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2024-04-10 18:15