Taiwan Prosecutors Recommend 20-Year Sentences in ACE Exchange Crypto Fraud Case
Summary:
Taiwanese prosecutors have proposed a minimum 20-year prison sentence for four key suspects including ACE Exchange founder David Pan and director Wang Chen-huan, involved in a fraud and money laundering case linked to ACE Exchange. It's estimated that over 1,200 people were duped, leading to a financial loss of 800 million New Taiwan dollars ($24.56 million). This case increased Taiwan's legal scrutiny on crypto platforms, with ACE Exchange being labeled a "high-risk cryptocurrency exchange".
Taiwan's judicial authorities have recommended at least a 20-year jail term for the major suspects implicated in a case of fraud and money laundering involving the ACE Exchange crypto trading platform. As per a local news story, the Taipei District Prosecutors’ Office put forth indictments against 32 individuals for fraud and laundered money charges, among them being ACE Exchange's originator David Pan, his affiliate Lin Keng-hong, and lawyer Wang Chen-huan. These individuals - with Wang having served as the exchange's chair - are now believed to have swindled over 1,200 people, leading cumulatively to a monetary loss of around 800 million New Taiwan dollars (or US$24.56 million). This figure is a marked increase from an earlier stated loss amount of 340 million New Taiwan dollars (or $10.6 million). Reportedly, the growing scale of the financial loss informs the suggested penalty. For Wang, the prosecutors have sought a minimum 12-year prison term due the part he played in making the dubious scheme possible, as well as his position as a director of a large law firm. Pan and 14 others associated with the case were apprehended by Taipei City police in January 2024, following police raids at several locations, inclusive of the Ace headquarters. The inquiry brought to light Pan's connection with a dubious crypto wallet service called "Alfred" or "Afu wallet", as well as an associated crypto card. Reportedly, after encouraging investments in a number of tokens throughout 2019, Pan and Lin attempted to turn ACE Exchange into Asia's leading blockchain ecosystem for crypto transactions, which led to a great many investors experiencing a steep fall in token value. Unable to convert them back to New Taiwan dollars as promised, the duped investors initiated legal proceedings. An initial verdict by a Taiwanese court has called for seizure of defendants' assets, some already confiscated assets come up to approximately 3.5 million New Taiwan dollars (about $110,000). In a statement issued on April 8 in response to the indictments, ACE Exchange denied any connection between Pan's fraudulent activities and the platform, maintaining that Pan's involvement in daily operations ended in 2022. ACE Exchange, a relative newcomer in Taiwan, launched towards the end of 2018 and is said to trade approximately $14 million on a daily basis. Given a trust score of 2.78 out of 10 by Traders Union, it is regarded as a "high-risk cryptocurrency exchange". Taiwan will reportedly consider international trends before deciding on crypto ETFs.
Published At
4/27/2024 2:45:08 PM
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