Authorities in Taiwan have taken decisive action against cryptocurrency fraud, with the arrest of David Pan, the founder of Ace Exchange. The Taipei City police, in collaboration with law enforcement agencies, apprehended Pan and 14 accomplices in coordinated raids across various locations, including Ace’s headquarters. The Liberty Times reported on January 4th that the arrests were made in connection with an alleged fraud scheme involving cryptocurrencies.
Ace Exchange and its associates are accused of deceiving investors with false crypto claims, resulting in illegal gains of approximately 200 million Taiwanese dollars, equivalent to $6.4 million at the time of reporting. The authorities are actively pursuing the case, emphasizing the severity of fraudulent activities within the crypto space.
Ace Exchange Responds, Pledges Cooperation
In response to the allegations, Ace Exchange released a statement on January 4th via X (formerly Twitter). The exchange distanced itself from the purported illegal actions, attributing them to the “token project side” and assuring the public that they had no impact on the platform’s overall operations. Ace’s president, Wang Chenhuan, announced plans to delist the MOCT/TWD trading pair on January 8th, with full cooperation pledged for any ongoing investigations.
Collaboration Amidst Controversy
Wang Chenhuan addressed the media, acknowledging that some currencies listed in 2019 were linked to illicit activities. However, he clarified that Ace Exchange is actively collaborating with authorities as a witness and dismissed reports of employee involvement in the case as untrue. The unfolding situation has raised concerns about the credibility of crypto platforms and the need for stringent regulatory measures.
Taiwanese police seized approximately $3.5 million in cryptocurrency during the operation. Pan and his associates, facing charges of fraud, have reportedly refused to cooperate with investigators. The development highlights the challenges faced by law enforcement in tackling crypto-related crimes and underscores the urgency for robust regulatory frameworks.
Ace Exchange’s Standing in the Crypto Market
Founded in 2018, Ace Exchange holds a prominent position among Taiwan’s major crypto trading platforms alongside MaiCoin and BitoGroup. The firm, navigating a dynamic regulatory landscape, is a member of industry associations, emphasizing the broader implications of the case on the crypto market in the country.
