ACE Exchange, one of Taiwan’s largest crypto trading platforms, is reportedly under investigation for alleged fraudulent activities, with local authorities estimating the value of the fraud to be over $32 million.
However, the company clarified that its employees were not involved in the alleged fraud case.
ACE Exchange Founder Arrested for Fraud Allegations
According to local news outlet Liberty Times, Taiwanese police arrested the founder of ACE Exchange, David Pan, and 13 other suspects said to be employees of the firm for reportedly promoting worthless cryptocurrencies to investors for three years.
Pan, along with Lin Nan, who appear to be the masterminds, told investors through various social media that these tokens will be listed on popular local and foreign crypto exchanges as a way to make them seem credible, according to the report.
They also allegedly deceived unsuspecting victims into believing that the purchased cryptocurrencies would bring huge returns. However, the promoted tokens either plummeted in value or were no longer in circulation.
Meanwhile, the police were able to arrest Pan and the 13 suspects following multiple raids and seized NT$ 111.52 million ($3.6 million) from Lin’s residence.
Authorities also confiscated crypto assets worth NT$ 108 million ($3.4 million), with the total value of asset seizures above NT$200 million ($6.4 million). The report further stated that the police believe the level of fraud by Pan and Lin for three years stood at an estimated NT$ 1 billion ($32 million).
ACE Exchange Says Arrests Reports Inaccurate
Following news of the fraud case, ACE Exchange released a statement saying its employees were not arrested by the police while stating that the issue is related to some listed cryptocurrencies in 2019 that “were involved in illegal activities.”
“Basically, ACE is cooperating with the investigation as a witness. Some media reported that our employees were involved in the case, which is not true. We have sent a letter to the media to correct it.”
The company also said it would delist the MOCT/TWD trading pair from its platform on Jan. 8, 2024. ACE added that the firm carries out a regular “market review process” for coin listings and will delist tokens that do not meet the requirements.
ACE Exchange was founded in 2018 and is one of Taiwan’s three biggest crypto platforms.