The founder of Taiwan’s Ace exchange has been indicted in a $10.6 million fraud case.
Prosecutors in Taiwan are taking action against the founder of the exchange, David Pan.
Pan was indicted along with six other suspects on April 8, according to a public prosecutor's statement. Prosecutors charged him with money laundering and fraud, which resulted in a loss of 340 million New Taiwan dollars ($10.6 million).
It is recalled that the Taipei City Police previously raided various locations, including the Ace headquarters, where Pan and 14 other people were allegedly involved in the case in January 2024.
Prosecutors have confirmed that Pan is one of the people linked to a fraudulent cryptocurrency wallet service and related crypto card called “Alfred” or “Fu Wallet”.
According to prosecutors, the individuals defrauded customers by offering offline orders and the classic high-reward promise model of bogus investment groups.
After depositing their money, defrauded investors were unable to withdraw their money or their accounts were suspended.
A Taiwanese court has reportedly ordered the seizure of the defendant's assets, with some confiscated assets worth at least NT$3.5 million, 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 stop participating in day-to-day operations in 2022.
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“The wallet product was developed by a third-party team entrusted by former director Pan and is not a product or service launched by Ace Exchange,” the company emphasized. He added that Ace was cooperating with the local authorities.
The exchange stated the following.
“Please rest assured that the business and operating conditions of Ace Exchange are normal. We ensure the safety of user assets, and deposit and withdrawal services work smoothly for all cryptocurrencies and New Taiwan dollars.”
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.
Cointelegraph reached out to the Ace exchange for comment on the details of the lawsuit but did not receive a response at the time of publication.
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