Taiwan prosecutors are recommending a minimum sentence of 20 years in prison for the four main suspects in the fraud and money laundering case involving cryptocurrency trading platform ACE Exchange.
According to a local news report, the Taipei District Prosecutor's Office charged 32 people with fraud and money laundering, including ACE Exchange founder David Pan, his business partner Lin Keng-hong, and prominent lawyer Wang Chen-hong. huan, who served as president of the exchange.
Prosecutors now believe that more than 1,200 people were deceived, resulting in an estimated total loss of 800 million New Taiwan dollars (US$24.56 million). This is an increase from the previous estimated loss of 340 million new Taiwan dollars ($10.6 million).
According to the report, the increase in losses justifies the sentencing recommendation. Prosecutors also recommended at least 12 years for Wang, considering his status as a director of a well-known law firm and his alleged vital role in assisting the scheme.
In January 2024, Taipei City police arrested Pan and 14 other people linked to the case, conducting raids at several locations, including Ace's headquarters. Investigations revealed Pan's association with the fraudulent crypto wallet service known as “Alfred” or “Afu wallet”, along with a related crypto card.
According to prosecutors, in 2019, the suspects promoted investments in NFTC tokens, bitnature coins, mochange (an ACE Exchange token), and other tokens, using whitepapers and promotional materials to enhance their credibility.
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During their promotional efforts, Pan and Lin aimed to build ACE Exchange into Asia's most comprehensive blockchain ecosystem for cryptocurrency trading. However, many investors experienced a sharp drop in token value. They were unable to convert them back to new Taiwan dollars as guaranteed, prompting them to file complaints for a legal investigation.
A Taiwanese court reportedly ruled that the defendant's properties should be seized, with some confiscated assets amounting to at least 3.5 million New Taiwan dollars or $110,000.
In response to the allegation, Ace Exchange released a statement on April 8, reiterating that Pan and his fraudulent activity had nothing to do with the platform, as he reportedly stopped participating in daily trading in 2022.
Ace Exchange is a lesser-known centralized crypto exchange based in Taiwan. According to data from CoinMarketCap, the platform was launched at the end of 2018 and trades around $14 million a day. According to data from Traders Union, Ace Exchange should be considered a “high-risk cryptocurrency exchange” with a trust score of 2.78 out of 10.
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