On Friday, the Taipei District prosecutor accused 32 individuals of involvement in Ace Exchange. The suspected were accused of committing severe crimes of defrauding the investors and engaging in money laundering activities.
In the report, the prosecutors proposed that the four primary suspects related to the Ace Exchange saga should receive 20 years imprisonment. In this case, the primary suspect included the founder of Ace Exchange David Pan, former chairman Wang Chen-huan and their business partner Lin Keng-hong.
Taiwan Prosecutors Charge Ace Exchange Founders
The indictment of the 30 suspects demonstrated Taiwan’s commitment to addressing financial crime. According to the report, the prosecutors claimed the role of the suspects at Ace Exchange impacted huge financial losses.
Reflecting on the Ace Exchange case, the prosecutor noted that around 1200 individuals were enticed to invest in NFTC coins and Bitnature token change, among other digital assets.
The suspect invested in marketing their products through white papers and other promotional approaches to attract a large audience. As the suspect intensified their product promotion in Asia, Lin and Pan agreed to create Ace Exchange.
The two business partners agreed to invest heavily to position Ace Exchange among the leading blockchain networks supporting the buying and selling crypto assets in Asia. Months after investing in Ace Exchange, the investors noted a sudden decline in the value of their digital assets.
Contrary to the promises made while purchasing the digital assets, the investors observed the value of their crypto assets plummets below the Taiwan dollar. The sudden decline in the price of the Ace Exchange digital assets created fear among investors.
Ace Exchange Founders Accused of Price Manipulation
In retaliation to the predicament, the affected investors filed charges against the Ace Exchange and the officials for luring them into fraudulent schemes. In a subsequent report, the prosecutors noted that the suspect manipulated the prices to attract a large following.
A review of Ace Exchange demonstrated that suspects are accused of selling digital tokens and other blockchain products worth $2.2 billion. The suspect pocketed the profits generated from Ace Exchange to acquire property, including real estate in Yilan County.
The prosecutors noted that around 340 NT$, equivalent to $10.6 million was lost in the Ace Exchange scandal. After a thorough investigation, the prosecutors revised the figures and noted that the Ace Exchange saga subjected customers to loss of 800 million New Taiwan dollars valued at $24.56 million.
Based on the severity of the case, the prosecutors proposed that Wang should serve 12 years imprisonment. The official argued that Wang’s role as the director of Ace Exchange was punishable by law.
Taiwan Law Enforcers Target Ace Exchange
Earlier in January, the Taipei police raided the Ace Exchange, arresting 14 suspects. The arrest of the Ace Exchange officials obliged the Taiwanese law enforcers to probe the operation of the trading platform.
In their findings, the law enforcers noted that the founder of Ace Exchange, Mr. Pan, was involved in running a fraudulent crypto wallet, Alfred Wallet. Based on the losses caused by the suspect, the Taiwan court ordered the regulators to seize assets worth 3.5 million NT$ owned by the suspects.
In response to the indictment of the suspects, the Ace Exchange provided a comprehensive report explaining that Pan had nothing to do with the platform. The Ace team confessed that since 2022, the David Pan was not involved in the running of the platform.
