Taiwan's ACE Exchange Founder and Associates Face 20-Year Prison Sentences in Fraud and Money Laundering Case

Luisa Crawford  Apr 28, 2024 17:06  UTC 09:06

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Taiwan's ACE Exchange, one of the major cryptocurrency exchanges in the country, has been embroiled in a fraud and money laundering case. The case has led to the indictment of several individuals, including ACE Exchange founder David Pan, on charges of money laundering and fraud. Prosecutors are now recommending 20-year prison sentences for four of the suspects involved in the case.

Details of the Case:

  1. Involvement of ACE Exchange Founder and Associates:
    • David Pan, the founder of ACE Exchange, is among the individuals indicted in the case.
    • Pan's business partner, Lin Keng-hong, and attorney Wang Chen-huan, who served as chairman of the crypto exchange, are also primary suspects.
  2. Alleged Fraudulent Activities:
    • The suspects are accused of advising investors to purchase various tokens, including NFTC tokens, BitNature (BNAT), and ACE's MoChange (MOCT).
    • The defendants allegedly manipulated the prices of these tokens on the exchange to attract new investors.
    • When the tokens lost value, investors were unable to convert their holdings to New Taiwan dollars, leading to the discovery of the alleged scam.
  3. Scale of the Fraud:
    • The investigation revealed that over 1,200 individuals were defrauded, resulting in an estimated loss of 800 million New Taiwan dollars ($24.56 million).
    • The suspects obtained over 2.2 billion New Taiwan dollars ($67.48 million) through the sale of tokens and other blockchain products.
  4. Money Laundering and Concealment of Funds:
    • David Pan and other individuals involved in the case hid the money in various locations, including real estate purchases.
    • Approximately 43 million New Taiwan dollars ($1.3 million) were transferred to attorney Wang, who then reinjected half of the amount into the exchange to boost token prices.
  5. Prosecutors' Recommendations :
    • Prosecutors are recommending 20-year prison sentences for the primary suspects, including David Pan and Lin Keng-hong.
    • Wang Chen-huan, who held a high position in a law firm and allegedly played a significant role in assisting the scheme, is recommended to receive a sentence of at least 12 years.

Image source: Shutterstock

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