The ongoing saga between Taiwanese authorities and former executives of crypto exchange ACE continues with a new round of charges filed against its founder, David Pan, and 31 others linked to the case.
The stock exchange and its former directors were under investigation for alleged fraud and money laundering since January 2024. Authorities have already conducted massive searches at ACE headquarters and other related addresses and apprehended several people.
Crypto token scheme sees 32 people charged
Local newspaper Taipei Times informed of a recent development in the ongoing investigation into former ACE executives. On Friday, the Taipei District Prosecutor’s Office indicted 32 people in connection with the ACE case.
Among the accused, Pan, his business partner Lin Keng-hong and lawyer Wang Chen-huan, who served as chairman of the crypto exchange, became the main suspects.
Prosecutors found that since 2019, the suspects allegedly advised investors to purchase multiple tokens. The approval included ACE’s NFTC, BitNature (BNAT), and MoChange (MOCT) tokens.
Pan and Lin promoted the tokens during negotiations and promised to make the ACE exchange “Asia’s most comprehensive blockchain ecosystem for cryptocurrency trading.” Additionally, defendants wrote white papers and other documents to increase legitimacy.
The prosecutor alleged that during the advertisement, the suspects manipulated the prices of the tokens on the stock exchange to attract new investors.
When the tokens significantly lost value, investors attempted to convert their holdings into new Taiwan dollars. After being unable get their money backdefrauded investors alerted authorities to the alleged scam.
The investigation revealed that this scheme obtained more than NT$2.2 billion, worth approximately $67.48 million, through the sale of tokens and other blockchain products.
Pan, alongside others involved, hid the money in several locations and even purchased real estate to hide the funds. Additionally, NT$43 million, worth around $1.3 million, was transferred to Wang, who then injected half of it back into the exchange to increase the token’s prices.
Prosecutors seek more than 20 years in prison
The investigation revealed that around 1,200 people were defrauded through this scam, with an estimated loss of NT$800 million, or approximately $24.56 million. Given the scale of the losses, prosecutors recommended sentences of at least 20 years for the main suspects, including Pan and Lin.
Additionally, they suggested a sentence of at least 12 years in prison for Wang, who held a high position in a law firm and appears to have played a significant role in the scheme.
It should be noted that these accusations are not the first leveled against the ACE founder since the investigation began.
At the beginning of April, the news broke of the indictment of David Pan and six others for money laundering and fraud. Following the investigation, prosecutors revealed a “well-organized plan” led by Pan and Lin.
The project involved the use of the “Alfredo Wallet app”, created by Fu Hai Digital Innovation, a company in which ACE invested, to carry out “offline and over-the-counter transactions of virtual currencies”.
According to the report, Pan and the other six suspects caused more than 162 victims, losing NT$340 million, worth about $10.7 million. The seven defendants were therefore charged with violating the Prevention of Organized Crime Ordinance, aggravated fraud and money laundering.
ACE has already distanced itself from the suspects, reassuring its users that Pan and the other accused are no longer involved in the crypto exchange. Furthermore, he said they were collaborating with authorities and all operating conditions remained normal.
Crypto Total Market Cap is at $2.304 trillion. Source: TOTAL on TradingView
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