As a researcher with a background in finance and investigative journalism, I’ve followed the developments surrounding ACE exchange and its former executives with great interest. The latest indictment of 32 individuals related to this case is yet another concerning chapter in this ongoing saga.
As a crypto investor following the developments surrounding Taiwan’s crypto exchange ACE, I’m keeping a close eye on the latest turn of events. The authorities have leveled new accusations against ACE’s founder, David Pan, and an additional 31 individuals allegedly connected to the case.
Since January 2024, the exchange and its previous leaders have faced scrutiny from authorities for suspected fraud and money laundering activities. Previously, law enforcement carried out extensive searches at ACE’s main office and other associated locations, leading to the arrest of several individuals.
Crypto Tokens Scheme Sees 32 People Indicted
The Taipei Times reported this week on new advancements in the probe into the former leaders of the ACE exchange. On a recent day, the Taipei District Prosecution announced indictments for 32 individuals implicated in the ACE scandal.
The main suspects in the case among the accused group were identified as Pan, Lin Keng-hong, and lawyer Wang Chen-huan, with the latter holding the position of chairman at the crypto exchange.
Starting from the year 2019, I uncovered that the accused parties reportedly urged investors to acquire various tokens based on their recommendations. Among these tokens were NFTC, BitNature (BNAT), and ACE’s MoChange (MOCT).
During their presentations, Pan and Lin advocated for the use of the tokens and pledged to establish ACE as “Asia’s all-encompassing blockchain platform for cryptocurrency trading.” Additionally, the accused prepared and released whitepapers and other documents to bolster credibility.
During the advertisement, the suspects are accused of manipulating the token prices on the exchange in order to draw in new investors.
When the value of their tokens dramatically decreased, investors attempted to exchange their assets for New Taiwan dollars. Despite their efforts, they were unable to retrieve their funds. Subsequently, these swindled investors reported the suspected fraud to the relevant authorities.
As a crypto investor, I uncovered that this fraudulent scheme amassed approximately NT$2.2 billion, which translates to roughly $67.48 million, from token sales and other blockchain-related transactions.
Together with others involved in the scheme, Pan concealed their ill-gotten gains in various places and even acquired real estate as a means to further hide the funds. Furthermore, NT$43 million, equivalent to approximately $1.3 million, were moved to Wang’s account. Later on, he transferred half of that amount back into the exchange to artificially inflate the token prices.
Prosecutors Request Over 20 Years Prison Sentence
As an analyst looking into this case, I’ve discovered that around 1,200 individuals fell victim to the scam, resulting in an estimated financial loss of NT$800 million or approximately $24.56 million. Given the substantial amount of damages caused, the prosecutors have proposed sentences of at least two decades for the key suspects, including Pan and Lin.
The authorities proposed that Wang, an ex-law firm executive with influence, be sentenced for at least a dozen years due to his alleged involvement in the cryptocurrency scam.
The founder of ACE had previously faced accusations, as this is not the first time charges have been brought up since the probe began.
In early April, it was revealed that David Pan and six others were accused of money laundering and fraud in a court indictment. Following this announcement, the prosecution disclosed a intricately planned operation orchestrated by Pan and Lin.
The plan included utilizing the “Fu Hai Digital Innovation’s Alfredo Wallet App” for conducting “real-life and counter transactions of digital currencies.”
As a crypto investor reading this report, I understand that a group of individuals, including Pan and six others, allegedly defrauded more than 162 victims out of approximately NT$340 million, which translates to around $10.7 million in U.S. dollars. These actions are said to have violated the Organized Crime Prevention Ordinance, aggravated fraud, and money laundering laws.
Previously, ACE made it clear that the individuals under suspicion, including Pan and the other defendants, were no longer connected to their crypto exchange. The organization also emphasized that they had been working in conjunction with law enforcement agencies, ensuring business continuity for its users.
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2024-04-27 08:12