A significant cryptocurrency exchange in Taiwan is being looked at for a possible NT$1 billion scam.

ACE, one of Taiwan’s leading crypto exchanges, founded by David Pan and Lian Nan in 2018, is under investigation for a major fraud case exceeding NT$1 billion ($32M). 

Recent reports reveal that the exchange, known as “ACE Exchange,” allegedly engaged in fraudulent activities and was subjected to a thorough investigation by the New Taipei City Criminal Police Brigade. 

 

Major Taiwanese Crypto Exchange Under Investigation

  • ACE Exchange, a prominent Taiwanese cryptocurrency exchange, founded in 2018 by David Pan and Lin Nan, is facing investigation for alleged fraud exceeding NT$1 billion ($32M).
  • The exchange is accused of engaging in fraudulent activities, deceiving over 100 investors through fake advertisements on social media platforms like Instagram and Facebook.
  • The suspects, Pan and Lin, are reported to have promoted “junk coins” and “air coins,” exploiting information gaps and promising quick wealth.
  • The fraud involved a well-organized operation, with Pan providing a credible platform for virtual currencies, enhancing their credibility.
  • Law enforcement conducted raids at 15 locations, including ACE Exchange headquarters, resulting in the arrest of 14 individuals, including Pan and Lin.
  • Cash amounting to NT$111.52 million ($3.5M) was seized from Lin’s residence, along with crypto assets equivalent to NT$108 million ($3.47M) from the company.
  • The illegal gains seized totaled over NT$200 million (6.4M), and preliminary estimates suggest the fraud may exceed $32 million over three years.
  • Both Pan and Lin remained evasive during police interrogations, and all 14 individuals are transferred to the police on suspicion of fraud under various acts.
  • Further legal actions are expected as the investigation progresses.

Key Points:

  1. ACE Exchange founders accused of promoting worthless crypto assets and defrauding investors through misleading advertisements.
  2. Social media platforms like Instagram and Facebook allegedly used to attract victims with promises of quick wealth.
  3. Well-organized operation with Pan providing credibility to virtual currencies listed on the exchange.
  4. Raids conducted at 15 locations, including ACE Exchange headquarters, resulting in the arrest of 14 individuals.
  5. Seizure of NT$111.52 million ($3.5M) in cash and NT$108 million ($3.47M) in crypto assets from the suspects.
  6. Preliminary estimates suggest the fraud may exceed $32 million over three years.
  7. Legal actions initiated under the Criminal Code, Money Laundering Prevention Act, and the Banking Act.
  8. Ongoing investigation expected to reveal more details about the extent of the fraud and its impact on victims.

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