Ace Exchange suspects in Taiwan face potential 20-year prison terms as prosecutors intensify their pursuit

Prosecutors in Taiwan are suggesting that the four main suspects in the fraud and money laundering case associated with cryptocurrency trading platform Ace Exchange should receive prison sentences of 20 years. The Taipei District Prosecutors’ Office has charged 32 individuals, including Ace Exchange founder David Pan, his business partner Lin Keng-hong, and prominent attorney Wang Chen-huan, who served as the exchange’s chairman, with fraud and money laundering.
The prosecutors now believe that more than 1,200 people were victims of the scam, resulting in estimated losses of 800 million New Taiwan dollars ($24.56 million). This is an increase from the previously estimated losses of 340 million NT$ ($10.6 million).
The scale of the losses, as reported, justifies the recommended sentence. The prosecutors have also suggested a minimum of 12 years for Wang, taking into account his position as a director of a well-known law firm and his alleged involvement in assisting the scheme.
In January 2024, Pan and 14 others connected to the case were arrested by Taipei City Police, who conducted raids at various locations, including Ace’s headquarters. Investigations revealed Pan’s association with the fraudulent crypto wallet service called “Alfred” or “Afu wallet,” as well as a related crypto card.
According to the prosecutors, in 2019, the suspects promoted investments in NFTC tokens, bitnature coins, mochange (an Ace Exchange token), and other tokens using white papers and promotional materials to enhance credibility.
During their promotional efforts, Pan and Lin aimed to transform Ace Exchange into Asia’s most comprehensive blockchain ecosystem for crypto trading. However, many investors saw a significant decline in token values and were unable to convert them back to New Taiwan dollars as promised. This led them to file complaints and request a legal investigation.
Reportedly, a Taiwanese court has ruled that the defendants’ assets should be seized, with some confiscated assets amounting to at least 3.5 million NT$ or $110,000.
In response to the indictment, Ace Exchange released a statement on April 8, stating that Pan and his fraudulent activities had no connection to the platform, as he reportedly stopped being involved in day-to-day operations in 2022.
Ace Exchange is a relatively unknown centralized cryptocurrency exchange based in Taiwan. According to CoinMarketCap data, the platform was launched in late 2018 and has a daily trading volume of around $14 million.
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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