In a significant crackdown on cryptocurrency fraud, Taiwanese prosecutors have proposed a minimum of 20 years imprisonment for the four primary suspects involved in a large-scale fraud and money laundering operation centered around the ACE Exchange. The Taipei District Prosecutors’ Office has indicted 32 individuals, highlighting ACE Exchange founder David Pan, his business associate Lin Keng-hong, and the well-known lawyer Wang Chen-huan, who served as the chairman of the exchange.
Escalating Financial Losses Prompt Severe Penalties
The investigation revealed that over 1,200 victims were defrauded, with losses now calculated at approximately 800 million New Taiwan dollars (US$24.56 million), a significant jump from the previously estimated 340 million New Taiwan dollars ($10.6 million). This stark increase in financial losses has led prosecutors to justify their severe sentencing recommendations. While the primary suspects face at least 20 years, Wang, given his prominent legal background and crucial involvement, is recommended a 12-year sentence.
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Details of the Fraud
In early 2024, following extensive raids, including at the headquarters of Ace, police arrested Pan and 14 others. The investigation uncovered Pan’s connections with the fraudulent crypto wallet service “Alfred” or “Afu wallet,” and related crypto cards. Back in 2019, the suspects had heavily promoted various cryptocurrencies, including NFTC tokens and bitnature coins, through ACE Exchange. They purported to establish a vast blockchain ecosystem in Asia. However, the tokens’ values plummeted, and investors could not redeem them for New Taiwan dollars as promised, leading to a slew of legal complaints.
Legal and Corporate Repercussions
Following these developments, a Taiwanese court has ordered the seizure of assets from the defendants, amounting to at least 3.5 million New Taiwan dollars ($110,000). In an official response, Ace Exchange distanced itself from Pan, asserting that his fraudulent activities were unrelated to the platform’s operations since he stepped back in 2022.
ACE Exchange, which started in late 2018, is considered a high-risk entity with a low trust score, reflecting its precarious standing in the cryptocurrency market.
