ACE Exchange Faces Turmoil as Founder Arrested in Cryptocurrency Scam Unravels

In a sudden and dramatic twist, ACE, a Taiwanese cryptocurrency exchange, finds itself in the midst of turmoil as its founder, David Pan, was apprehended on January 4. Alongside 13 other suspects, Pan faces accusations related to their purported involvement in a cryptocurrency scam spanning three years, as reported by the Liberty Times.

According to the accusations made against Lin, a co-conspirator, and ACE’s founder David Pan, there was a well-planned conspiracy that used deceptive social media advertising to lure investors in. It has been revealed that victims who fell for the fraudulent operation invested large sums of money in questionable cryptocurrency tokens like MOCT. When the issue became more serious, Taiwan authorities raided many places, including an ACE exchange office. As a result, NT$100 million (about $2.8 million) in cryptocurrency were taken. NT$111.52 million (about $3.6 million) in cash, for a total of $6.4 million, was found during a search at Lin’s home.

Cooperation and Operational Clarifications

Facing the fallout from its founder’s arrest, ACE has taken a stance of full cooperation with law enforcement. A spokesperson for the exchange clarified that some of the arrested individuals were not company employees. Additionally, ACE highlighted that founder David Pan had disengaged from the day-to-day operations of ACE since 2022, indicating a detachment from the alleged illicit activities.

The ACE incident adds another layer to the concerning trend of cryptocurrency scams within the Asian market. Recent cases, including an Indian engineer losing over $100,000 to a digital asset investment scam and Indian authorities arresting police agents in connection with a $300 million crypto scam, underscore the challenges faced by the growing crypto industry.

The episode serves as a clear reminder of the necessity for regulatory measures and vigilance in the cryptocurrency industry to safeguard investors from more complex schemes, especially as ACE struggles with the legal fallout from its founder’s incarceration.