Ace Exchange Founder David Pan Indicted for $10.7M Crypto Fraud: Latest Updates and Impact on Taiwan’s Crypto Industry
Ace Exchange founder David Pan and six others indicted for crypto fraud involving $10.7M in cryptocurrencies
Taiwanese prosecutors have indicted Ace Exchange founder David Pan and six other individuals on charges of money laundering and crypto fraud involving digital assets valued at NT$ 340 million New Taiwan dollars ($10.7 million). The court ruled that the defendant’s property and other owned assets worth $110K be confiscated.
According to official statements, Pan defrauded at least 162 individuals by offering a fraudulent product built on over-the-counter exchanges and faux investment platforms. He created an offshore trading platform that offered a cryptocurrency wallet service called “Alfred Wallet,” which lured unsuspecting victims for the storage of their funds. However, once the funds were deposited, the investors lost access to them.
Ace Exchange responded to the indictment by releasing a statement distancing itself from Pan, stating that the wallet service involved in the case was not a product of Ace but was developed by a third-party team hired by Pan. The exchange assured users that their assets were secure and that all services for depositing and withdrawing cryptocurrencies were operating smoothly.
Taiwan is facing a surge in cryptocurrency fraud and money laundering cases, with several high-profile incidents coming to light recently. Pan and a collaborator named Lin were accused of orchestrating a cryptocurrency fraud scheme using deceptive social media ads to lure investors into worthless cryptocurrencies. In another case, the COO of Taiwanese exchange Bitgin was arrested for alleged involvement in a money laundering network.
The Taiwanese authorities have announced plans to introduce new digital asset regulations in September 2024 to protect crypto investors in the country. As the crypto community in Taiwan continues to grow, incidents like these highlight the need for stronger regulations and safeguards to prevent fraud and protect investors.
