Taiwan Prosecutors Demand Lengthy Prison Terms for ACE Exchange Fraud and Money Laundering Suspects

Prosecutors in Taiwan are seeking substantial prison sentences for the masterminds behind the ACE Exchange cryptocurrency fraud scheme. The primary suspect, David Pan, and his accomplices face a minimum of 20 years imprisonment for defrauding over 1,200 individuals and causing losses estimated at US$24.56 million. The indictment includes charges of fraud and money laundering, with specific focus on the suspects' promotion of fraudulent tokens and their involvement in the "Alfred" crypto wallet service.

Taiwan Prosecutors Seek Extended Prison Sentences for Suspects in ACE Exchange Fraud and Money Laundering Case

Taipei, Taiwan - Prosecutors in Taiwan have recommended a minimum 20-year prison sentence for the four principal suspects involved in a large-scale fraud and money laundering scheme related to the cryptocurrency trading platform ACE Exchange.

The indictments, filed by the Taipei District Prosecutors' Office, target 32 individuals on charges of fraud and money laundering. The key figures implicated include ACE Exchange founder David Pan, his business associate Lin Keng-hong, and renowned attorney Wang Chen-huan, who held the position of chairman of the exchange.

Over 1,200 individuals are alleged to have fallen victim to the scheme, resulting in an estimated financial loss of 800 million New Taiwan dollars (approximately $24.56 million). This represents a significant increase from the previously estimated loss of 340 million New Taiwan dollars ($10.6 million) and is said to justify the severity of the recommended sentences.

Prosecutors have further suggested a minimum sentence of 12 years for Wang, citing his position as a director of a prominent law firm and his alleged facilitation of the fraudulent activities.

In January 2024, Taipei City police detained Pan and 14 other individuals associated with the case, executing search warrants at various locations, including ACE's headquarters. The investigation uncovered Pan's involvement with the fraudulent cryptocurrency wallet service known as "Alfred" or "Afu wallet," as well as a corresponding crypto card.

According to the prosecution's findings, from 2019 onwards, the suspects fraudulently promoted investments in NFTC tokens, bitnature coins, mochange (an ACE Exchange token), and other digital assets. White papers and promotional materials were used to establish credibility and lure investors.

During the promotional campaign, Pan and Lin sought to establish ACE Exchange as Asia's most comprehensive blockchain ecosystem for cryptocurrency trading. However, many investors experienced a substantial decline in the value of the tokens and were unable to convert them back into New Taiwan dollars as promised. The ensuing complaints prompted a legal investigation.

A Taiwanese court has reportedly authorized the seizure of the defendants' assets, with confiscated funds amounting to at least 3.5 million New Taiwan dollars ($110,000).

In response to the indictments, Ace Exchange released a statement on April 8, reiterating that Pan's fraudulent activities were not associated with the platform and that he had ceased his involvement in its daily operations in 2022.

Ace Exchange is a relatively obscure centralized cryptocurrency exchange based in Taiwan. According to CoinMarketCap, the platform was established in late 2018 and currently facilitates daily trading volumes of approximately $14 million. Data from Traders Union classifies Ace Exchange as a "high-risk cryptocurrency exchange" with a trust score of 2.78 out of 10.

Taiwanese authorities continue to monitor global trends and regulations in the cryptocurrency market. In September, a report indicated that Taiwanese officials were considering introducing laws governing digital currencies.