ACE Exchange at Center of Alleged $24.56M Crypto Fraud Scheme, Say Taiwan Authorities

According to recent reports from Taiwan, there is a crackdown on what the authorities claim is a big cryptocurrency hoax. 32 people, including officials from the ACE cryptocurrency exchange, are facing accusations from prosecutors about fraud-related offenses.

The head of the firm, Wang Chen-huan, and the inventors of the ACE exchange platform, David Pan and Lin Keng-hong, are among those charged. The four traders on the trading network may face terms of up to 20 years, according to the prosecution.

Deceptive Practices and Financial Losses

The Taiwanese government asserts that the scheme orchestrated by the accused defrauded approximately 1,200 individuals, resulting in losses totaling $24.56 million. The alleged fraud involved enticing investors to purchase virtual currencies, including ACE’s native asset, under false pretenses.

Investors were allegedly promised by Pan and Lin that ACE would become Taiwan’s leading cryptocurrency trading platform. The value of the native asset quickly fell, and investors discovered that they were unable to exchange the digital assets back into Taiwanese dollars as promised.

The accused, according to the prosecution, manipulated the market to draw in additional investors. Wang Chen-huan is charged with collecting $5.5 million and using some of it to reinvest in ACE, therefore deceiving dealers and raising asset values artificially.

Wang Chen-huan might receive a 12-year sentence, while Pan and Lin could receive possible 20-year terms, according to the prosecution’s requested harsh punishments for the defendants.