Taiwanese Prosecutors Seek Lengthy Prison Sentences for ACE Exchange Founder and Executives
Prosecutors in Taiwan have put forward severe penalties for ACE Exchange’s founder, David Pan, and former executives who are the main suspects in an alleged fraud and money laundering case. This move follows the filing of fresh charges against the exchange founder and others by the Taiwanese authorities.
Indictment of 32 Individuals in Alleged Money Laundering and Fraud Scheme
The Taipei District Prosecutors’ Office recently charged 32 individuals, including David Pan, his business partner Lin Keng-hong, and attorney Wang Chen-huan, who was the chairman of the exchange. The prosecutors claimed that the defendants promoted investments in various tokens like NFTC tokens, Bitnature coins, and MoChange, a token developed by ACE Exchange.
- White papers and documents were allegedly fabricated to enhance the credibility of these investments.
- The defendants advertised these tokens across different media platforms while manipulating their prices on exchanges to attract investors.
- Investors faced difficulties converting their tokens back into New Taiwan dollars, leading to complaints and accusations of fraud.
Financial Impact and Recommendations for Lengthy Prison Sentences
Reports indicate that investors suffered losses of around 800 million New Taiwan dollars due to these fraudulent activities, significantly higher than earlier estimates. The financial losses affected over 1200 investors, prompting prosecutors to suggest prison terms of at least 20 years for Pan and Lin.
- Approximately NT$43 million was transferred to Wang, who reinvested NT$26 million into the exchange to manipulate token prices.
- Wang, a senior employee at a law firm, could face a minimum sentence of 12 years if found guilty of aiding the scheme.
Response from ACE Exchange
Further investigations revealed that Pan and his associates generated revenue of at least NT$2.2 billion from token sales and other blockchain products. Plans were also uncovered to conceal cash in different locations, with some funds used to purchase real estate in Yilan County.
- Ace Exchange responded by asserting that Pan had not been involved in the daily operations of the platform since 2022, distancing itself from his alleged misconduct.
- The exchange affirmed that its operations were proceeding as usual and that they were fully cooperating with the authorities.
Hot Take: ACE Exchange Scandal Unveils Alleged Scheme
The unfolding scandal involving ACE Exchange sheds light on the alleged fraudulent activities carried out by the founder and executives. The severity of the charges and potential prison sentences reflects the gravity of the situation and the impact on investors. As the legal proceedings continue, the crypto community will closely follow the case’s developments and implications for the industry.
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