- ACE Exchange upholds operational integrity despite founder’s indictment.
- Alleged fraud scheme underscores cryptocurrency investment risks.
- David Pan’s legal issues prompt scrutiny of the crypto industry’s governance.
Taiwanese prosecutors have recently indicted David Pan, the founder of ACE Exchange, along with six other suspects, on charges of money laundering and fraud involving assets worth at least $10.7 million. The allegations revolve around the establishment of an offshore entity purportedly offering a service dubbed the “Alfred Wallet,” which allegedly enticed investors to deposit their stablecoin into these wallets. Subsequently, the suspects are accused of transferring and laundering these assets.
The victims of this alleged scam reportedly discovered they had been defrauded when they were unable to withdraw assets from their wallets. According to prosecutors, the group targeted at least 162 individuals and involved over NT$342 million ($10.7 million).
ACE Exchange has sought to distance itself from the accusations, asserting that Pan, while a former executive, was not involved in ACE’s operations at the time of the alleged offenses. They clarified that the wallet service implicated in the case was solely developed by Pan and a third-party team he had hired.
In response to the indictment against their founder, ACE Exchange issued a statement assuring users of the platform’s normal operational status and the security of their assets. They emphasized the seamless functioning of services for depositing and withdrawing cryptocurrencies and New Taiwan dollars.
David Pan’s legal troubles do not end with this recent indictment. He has also been detained in connection with another fraud case, allegedly orchestrated with a co-conspirator named Lin. In January, Pan and Lin were accused of engaging in fraudulent activities over three years, using false advertisements on social media to lure investors into certain cryptocurrencies.
ACE Exchange clarified that Pan had ceased his involvement in daily operations as of 2022, further emphasizing its commitment to upholding legal standards and condemning any misconduct.
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