David Pan, the purported founder of Ace Exchange, a cryptocurrency platform, has been taken into custody by Taiwanese authorities on charges of orchestrating fraudulent activities through digital currencies. Reported by Liberty Times on January 4, Taipei City police, in a series of raids spanning various locations including Ace Exchange’s main offices, arrested Pan along with 14 other individuals. Law enforcement officials allege that the accused collectively amassed approximately 200 million Taiwanese dollars, equivalent to $6.4 million USD at the time of this report, through deceptive practices aimed at duping investors with false cryptocurrency promises.
Ace Exchange, in a statement issued via its official X account on January 4, distanced itself from any purported unlawful deeds, attributing them to activities associated with its “token project” rather than its core operations. President of Ace, Wang Chenhuan, declared the exchange’s intention to remove the MOCT/TWD trading pair from its platform effective January 8, with MOCT being one of the tokens implicated in the alleged fraudulent scheme. Chenhuan pledged Ace’s “full cooperation” with authorities in their investigation.
Wang emphasized, “Certain currencies that were listed back in 2019 have been linked to illicit activities,” clarifying that Ace Exchange is actively aiding the investigation in the capacity of a witness. He refuted claims circulated by some media outlets suggesting involvement of Ace’s personnel in the illicit activities, asserting such allegations to be unfounded. The apprehension of Pan and subsequent investigation into Ace Exchange mark a significant development in the regulatory landscape surrounding cryptocurrency platforms in Taiwan, reflecting authorities’ heightened scrutiny amid concerns of fraudulent practices within the burgeoning digital asset sector.