Taiwanese Crypto Trading Platform Founder, David Pan, Indicted for Fraud and Money Laundering
Summary:
David Pan, founder of Taiwanese cryptocurrency trading platform, Ace Exchange, has been indicted by local prosecutors alongside six others accused of money laundering and fraud, leading to losses of 340 million New Taiwan dollars ($10.6 million). This follows a series of arrests made in January 2024, including Pan, in connection with the scandal. The fraudulent activities involved promises of high returns via offline exchanges and false investment groups. In response to the indictment, Ace Exchange confirmed its separation from the fraudulent activities associated with Pan, emphasizing that he was no longer involved in the platform's day-to-day operations. The exchange platform, launched in late 2018 and trading around $14 million per day, reassured customers of their asset's security and the smooth functioning of deposit and withdrawal services.
David Pan, the creator of Taiwanese digital currency trading platform, Ace Exchange, has found himself in the crosshairs of the local authorities. Prosecutors officially announced the indictment of Pan and six other individuals on April 8, based on accusations of money laundering and fraud, which have reportedly led to a loss of 340 million New Taiwan dollars (equivalent to about $10.6 million USD).
Earlier in January 2024, Taipei City law enforcement had placed Pan and 14 additional participants under arrest, post a series of raids carried out at different locations, inclusive of the main office of Ace.
Investigative findings suggest that Pan had affiliations with the dubious cryptocurrency wallet service often referred to as “Alfred” or “Afu wallet”, and its connected crypto card. As per the prosecutors, these individuals took advantage of customers by promising high returns through an offline counter exchange and bogus investment groups. However, those who were scammed either found themselves unable to retrieve their funds or faced blocked accounts.
A Court in Taiwan has apparently ordered a seizure of the defendants' assets, some of which amount to roughly 3.5 million TWD or about $110,000.
Reacting to the indictment, Ace Exchange released a statement on April 8, clarifying that any dishonest activities pursued by Pan are not related to the platform, considering his involvement in daily operations had ended in 2022. The platform also underscored that the controversial wallet service was developed by a third-party team under the direction of Pan, instead of being a product of Ace Exchange. The company also expressed its cooperation with the local agencies and assured regular trading conditions and secure user assets along with a smooth operation of deposit and withdrawal services for all digital currencies and New Taiwan dollars.
Ace Exchange is somewhat of a minor centralized crypto exchange situated in Taiwan. CoinMarketCap data shows that the platform began operations in late 2018 and maintains a daily trading volume around $14 million.
Based on information from Traders Union, Ace Exchange could be categorized as a "high-risk cryptocurrency exchange," with a mere trust score of 2.78 out of 10.
When contacted by Cointelegraph concerning details of the indictment, Ace Exchange did not provide any feedback by the time of this report.
Published At
4/10/2024 2:28:30 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.