ACE, one of the main cryptocurrencies in Taiwan exchangesfounded by David Pan and Lian Nan in 2018, it is under investigation for a major fraud case exceeding NT$1 billion ($32 million).
Recent reports reveal that the exchange, known as “ACE Exchange,” allegedly engaged in fraudulent activities and was subjected to a thorough investigation by the New Taipei City Criminal Police Brigade.
He investigation found that Lin Nan and Pan collaborated to deceive more than 100 investors through false advertisements, resulting in substantial financial losses. The suspects used social media platforms, such as Instagram and Facebook, to promote shit, allegedly taking advantage of information gaps and promising quick wealth.
Massive raid on ACE crypto Exchange
According to authorities, Lin Nan allegedly took advantage of the information breach to defraud investors by claiming that certain crypto assets listed on the ACE Exchange had a realizable value, using the rise of bitcoin (btc) as an example.
Through “deceptive narratives,” victims were induced to invest in virtual currencies called “junk coins” and “air coins.” In the end, these investments turned out to be useless, so they could not be collected or circulated.
According to local media reportsThe fraudulent scheme involved a “well-organized” operation, in which Pan provided a credible platform to list virtual currencies and enhance their credibility.
In response to the investigation, police carried out raids at 15 locations in Taipei, New Taipei and Taichung, including the headquarters of ACE Exchange. Fourteen people, including Lin, Pan and their employees, were arrested during the raids.
Police seized approximately NT$111.52 million (US$3.5 million) in cash from Lin's residence and deducted crypto assets equivalent to NT$108 million (US$3.47 million) from the company's stronghold. The illegal proceeds seized amounted to more than NT$200 million (6.4 million).
According to preliminary estimates, the fraud committed by Lin and Pan over three years may exceed $32 million.
Key Figures in ACE Exchange Fraud Case
According to the report, during police interrogations, both Lin and Pan were “evasive and reluctant” to provide more information.
Subsequently, the 14 individuals, including Lin and Pan, were transferred to the police on suspected fraud under the Penal Code, the Money Laundering Prevention Law and the Banking Law. The report states that further legal action will be taken against them.
The investigation into ACE Exchange, Taiwan's largest cryptocurrency exchange, has revealed a major fraud case involving more than NT$1 billion.
The founders, Lin Nan and Pan Nan, are accused of promoting worthless crypto assets and misleading investors through fake ads. As the investigation continues, it is expected that more details will emerge that will shed more light on the extent of the fraud and its impact on the victims.
Featured image from Shutterstock, chart from TradingView.com
