Taiwanese prosecutors have charged ACE Exchange founder, David Pan, the creator of ACE Exchange, one of the biggest exchanges in Taiwan, and six other individuals with money laundering fraud concerning assets valued at least $10.7 million.
On Monday the prosecutors said that ACE is accused of creating an offshore company that provided “Alfred Wallet” services to lure investors into depositing their stablecoin in the so-called wallets. The suspects then allegedly transferred and laundered the assets.Â
The suspects failed to withdraw assets from their wallets; at that time, they discovered they had been scammed, as per the statements. According to prosecutors, the group allegedly swindled at least 162 individuals, amounting to over NT$342 million ($10.7 million).
In a statement in response to the accusations made against its founder, ACE Exchange stated that Pan was a former executive and that the wallet service in question was created entirely by Pan and a team he hired from outside ACE.
“Please rest assured. The trading and operational status of ACE Exchange is completely normal,” stated ACE. “We guarantee the security of user assets. All services for depositing and withdrawing cryptocurrencies and New Taiwan dollars are operating smoothly.”
In addition, Pan is being held in connection with another purportedly orchestrated fraud case. Pan and another conspirator, Lin, were charged in January with working together for three years to deceive people into purchasing specific cryptocurrencies through fraudulent social media ads.
Following the announcement of Pan’s arrest in January, ACE clarified in a statement that Pan had stopped taking part in day-to-day operations in 2022.
Also Read: Taiwan Prosecutors Seek ACE Exchange Head’s Detention
