Taiwanese Crypto Exchange ACE Founder Arrested in Major Fraud Case

In a huge advancement that has sent shockwaves through Taiwan’s cryptocurrency sector, David Pan, the founder of ACE Exchange, one of the country’s largest crypto exchanges that, has been arrested on allegations of fraud. 

The police have seized assets worth of at least NT$200 million ($6.4 million), believed to be illegal gains from the fraudulent activities.

The arrest and allegations against David Pan

David Pan, along with 13 other suspects, was reportedly apprehended for their involvement in a fraudulent scheme that spanned over three years. David Pan and a co-conspirator, identified only by the surname Lin, are accused of using false advertisements on social media platforms to entice investors into investing in worthless cryptocurrencies, including MOCT. The elaborate scheme led to significant financial losses for unsuspecting investors who were lured by the deceptive marketing tactics.

The police operation on Wednesday included raids at multiple locations across Taiwan, including the office of ACE Exchange. In a significant haul, the police seized NT$111.52 million ($3.6 million) in cash from Lin’s residence and cryptocurrencies worth over NT$100 million. The total value of the seized assets thus far exceeds NT$200 million, as per the report.

ACE exchange’s response and future actions

In response to the unfolding events, a spokesperson for ACE Exchange clarified that the arrested individuals are not current employees of the company. They further stated that although David Pan was the founder of ACE Exchange, he had ceased participating in the exchange’s daily operations since 2022. Currently, ACE Exchange is cooperating with the police investigation, acting as a witness in the case.

Following the news of the alleged fraud involving its founder, ACE Exchange has now announced plans to delist the MOCT-TWD trading pair on January 8. The decision comes after many token holders had already redeemed their tokens for various coupons, including those for meals and hotel accommodations.

ACE Exchange’s standing and market review process

Established in 2018, ACE Exchange is recognized as one of Taiwan’s largest crypto exchanges, alongside other major players like BitoGroup and MaiCoin. In light of the recent events, ACE Exchange released a statement on Thursday, addressing the situation and reassuring its users.

The statement emphasized that the exchange regularly conducts market reviews to assess the performance and compliance of listed tokens. Tokens that fail to meet the set criteria are subject to delisting, a standard practice to maintain the integrity and reliability of the exchange.

Conclusion

The arrest of David Pan marks a challenging phase for ACE Exchange, as it navigates the repercussions of its founder’s alleged involvement in fraudulent activities. The exchange’s proactive measures, including the delisting of the MOCT-TWD trading pair and its cooperation with the ongoing police investigation, reflect its commitment to transparency and regulatory compliance. As the case unfolds, the crypto community in Taiwan and beyond will be closely watching how ACE Exchange manages this crisis and maintains trust among its users.