Founder of Taiwanese Crypto Exchange Arrested for Alleged Fraud, Firm Responds

David Pan, founder of Ace Exchange, faces arrest in Taiwan amid accusations of cryptocurrency-related fraud. The Liberty Times reports Pan and 14 others were arrested, with authorities alleging approximately 200 million Taiwanese dollars ($6.4 million) in illegal gains through deceptive crypto claims. Ace Exchange responds, emphasizing the alleged misconduct’s limited impact on its operations.

Arrest and Fraud Allegations

David Pan and 14 others, including Ace Exchange’s founder, were arrested by Taipei City police following raids on various locations, including the exchange’s headquarters. Authorities claim the individuals amassed illegal gains of 200 million Taiwanese dollars by misleading investors with false crypto claims.

Exchange Response and Token Delisting

 In a January 4 statement on X (formerly Twitter), Ace clarified that any alleged illegal actions were related to the “token project side” and did not affect the exchange’s overall operations. Ace president Wang Chenhuan announced plans to delist the MOCT/TWD trading pair, one of the tokens implicated in the alleged fraud, on January 8. The exchange commits to full cooperation with any investigations.

Cooperation with Investigation

Wang Chenhuan stated that ACE is cooperating with the investigation as a witness and refuted media reports suggesting the involvement of the exchange’s employees in the case. The president clarified that certain currencies listed in 2019 were linked to illegal activities but affirmed the exchange’s commitment to assisting in the investigation.

Seized Funds and Non-Cooperation

Taiwanese police confiscated approximately $3.5 million in crypto from the funds involved. Pan and the others reportedly refused to cooperate and are held under suspicion of fraud. The case raises questions about regulatory oversight and the potential impact on major crypto trading platforms in Taiwan.

Ace Exchange’s Position in the Market

¬†Founded in 2018, Ace Exchange, along with MaiCoin and BitoGroup, plays a significant role in Taiwan’s crypto trading landscape. Despite the regulatory changes in the country, Ace Exchange remains an active member of industry associations.

The arrest of Ace Exchange’s founder for alleged fraud underscores the challenges in the crypto space. The exchange’s response aims to reassure users, emphasizing the limited impact on its core operations and commitment to cooperation with ongoing investigations.

Read more from the blog

News

3 May 2023

StoneBlock CEO: Nervous investors will be eliminated from the market

News

24 Feb 2024

Shift in Perspective? Donald Trump Expresses Acceptance of Bitcoin

News

24 Feb 2024

Kraken Seeks Court’s Rejection of SEC Lawsuit