Taiwan’s leading crypto exchange, ACE, and its founders are facing allegations of deceiving investors with false claims about speculative token listings. The local city police have taken action by conducting raids and making arrests, including ACE founder David Pan and his co-conspirator Lin Nan. In total, 14 more employees from 15 different locations have also been arrested. A local news report reveals that the New Taipei City Criminal Police Brigade has investigated the fraud and seized crypto assets worth at least NT$200 million ($6.4 million).
Deceptive Practices and Accusations
The accusations state that Pan, Lin, and their team utilized social media platforms to promote fraudulent offerings involving worthless cryptocurrencies like MOCT. The report highlights that “Lin Nan and Pan Nan cooperated and used fake advertisements to deceive more than 100 investors into investing in worthless virtual currencies over the past three years.” These fraudsters allegedly created fear of missing out (FOMO) to entice investors with promises of quick profits.
“The police said that Lin Nan and Pan Nan cooperated and used fake advertisements to deceive more than 100 investors into investing in worthless virtual currencies in the past three years,” the report read.
ACE exchange claimed that digital assets are the future and suggested that some cryptocurrencies offer great potential for growth. The report also reveals that a professional team led the operation, and remuneration for the team was set high.
The police have filed various cases against the individuals involved, including violations of the Criminal Law, the Money Laundering Prevention Act, and the Banking Act. However, during the police investigation, Lin and Pan refused to cooperate and denied the charges against them.
“ACE employees are fully cooperating with the prosecutor’s investigation as witnesses. Some media reported that our company’s employees were involved in the case, which is not true,” Wang Chenhuan, President of ACE Exchange, noted.
Latest Developments and Response
In a recent announcement, ACE confirmed the delisting of the MOCT/TWD trading pair starting Monday. The exchange assured its users that all pending orders will be automatically removed after the delisting. ACE explained that media reports about the exchange stemmed from certain currencies listed in 2019 being associated with illegal activities.
