The founder of the ACE Exchange is accused of money laundering and fraud
Taiwan prosecutors indicted Ace Exchange founder David Pan and six other suspects on April 8, according to an official statement. They are accused of money laundering and fraud, which led to Pan's loss of 340 million New Taiwan dollars (about $10.6 million. At least 162 people became victims.
ACE Exchange, founded in 2018, is one of the largest cryptocurrency exchanges in Taiwan. David Pan ceased operations at the site in 2022.
In January 2024, Taiwanese police arrested David Pan and 14 of his associates on suspicion of promoting digital assets that have no real value. The damage caused by this activity is estimated at more than $32.3 million.
Method of fraud and seizure of property
In January, Taipei police arrested David Pan and 14 others allegedly involved in the crime after conducting raids at several locations, including the Ace Exchange headquarters. According to the data, Pan was one of the participants in a fraudulent cryptocurrency wallet service called "Alfred", also known as "Afu wallet", as well as an associated crypto card. Through them, users deposited cryptocurrencies into their accounts, which the exchange team took for themselves and laundered, prosecutors believe.
According to the prosecutor's office, the defendants took a popular fraud scheme typical of the last century, but applied it in a similar format in the offline sphere. They offered investors services to attract large investments with promises of high returns. In fact, investors who entrusted their funds to their promises were faced with the impossibility of withdrawing assets or discovered that their accounts were frozen. In this regard, the Taiwanese court ordered the confiscation of the property of the accused. Some of the forfeited assets are subject to a minimum forfeiture amount set at approximately $110,000.
According to the prosecutor's office, the defendants took a popular fraud scheme typical of the last century, but applied it in a similar format in the offline sphere. They offered investors services to attract large investments with promises of high returns. In fact, investors who entrusted their funds to their promises were faced with the impossibility of withdrawing assets or discovered that their accounts were frozen. In this regard, the Taiwanese court ordered the confiscation of the property of the accused. Some of the forfeited assets are subject to a minimum forfeiture amount set at approximately $110,000.
Reply from Ace Exchange
In response to the allegations, Ace Exchange issued a statement noting that the wallet was developed by a third-party team approved by former director Peng and is not an Ace Exchange product or service. They emphasized that they are cooperating with local regulators and provided the following assurance:
“The trading and operational status of the exchange is completely normal. We guarantee the safety of user assets. All services for depositing and withdrawing cryptocurrencies and fiat operate uninterruptedly.”
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