Taiwan prosecutors target 20-year sentences for ACE exchange suspects

Prosecutors in Taiwan are recommending at least 20 years in prison for the four main suspects on fraud and money laundering charges related to cryptocurrency trading platform ACE Exchange.

According to local news reports, the Taipei District Prosecutor's Office has indicted 32 people for fraud and money laundering, including ACE Exchange founder David Pan, his business partner Lin Kenghong and prominent lawyer Wang Chen Huan, chairman of the exchange.

Prosecutors have now admitted that more than 1,200 individuals have been defrauded, resulting in a total loss of 800 million New Taiwan dollars ($24.56 million). This is an increase from the previous loss of 340 million New Taiwan dollars ($10.6 million).

According to the report, the increase in the losses justifies the proposition of the sentence. Prosecutors recommended that Wang be given at least 12 years, given his status as director of a prominent law firm and his significant role in helping the scheme.

In January 2024, the Taipei City Police arrested Pan and 14 other people connected to the case and conducted searches at various locations, including Ace's headquarters. Investigations revealed Pan's connection to a crypto card linked to a fraudulent wallet service known as “Alfred” or “Foo Wallet”.

According to prosecutors, in 2019 the suspects promoted investments in NFTC tokens, bitnature coins, mochange – from ACE exchange and other tokens using white papers and promotional materials to boost their credibility.

Related: Taiwan to Introduce New Digital Currency Laws in September: Report

During their promotional efforts, Pan and Lin envisioned developing ACE Exchange into Asia's most comprehensive blockchain ecosystem for crypto trading. However, many investors have seen the token's price drop significantly. As confirmed, they were unable to return New Taiwan dollars, prompting them to file a complaint for legal investigation.

A Taiwanese court has reportedly ordered the seizure of the defendant's assets, with some confiscated assets worth at least 3.5 million New Taiwan dollars, or $110,000.

In response to the allegation, Ace Exchange released a statement on April 8, reiterating that Pan and his fraudulent activity had nothing to do with the platform, as it would cease participating in day-to-day operations in 2022.

Ace Exchange is a little-known centralized crypto exchange based in Taiwan. According to data from CoinMarketCap, the platform was launched in late 2018 and trades around $14 million per day. According to data from Traders Union, Ace Exchange should be considered a “high risk cryptocurrency exchange” with a trust score of 2.78 out of 10.

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