A fresh set of accusations has been brought against David Pan, the founder of the cryptocurrency exchange ACE, and another thirty-one people connected to the case in the ongoing legal battle between Taiwanese authorities and former executives of the company.
Since January 2024, the exchange and its former directors have been the subject of an inquiry into allegations of money laundering and fraud. In the past, authorities arrested a number of people after conducting extensive raids on ACE's headquarters and other relevant places.
32 People Are Accused in a Crypto Token Scheme
A recent development in the ongoing investigation of former ACE exchange executives was reported by the local news agency Taipei Times. The Taipei District Prosecutors' Office filed 32 indictments in connection with the ACE case on Friday.
The main suspects among the accused were lawyer Wang Chen-huan, who was the chairman of the cryptocurrency exchange, Pan, and his business partner Lin Keng-hong.
Prosecutors found that the suspects had allegedly been advising investors to buy several tokens since 2019. ACE's MoChange (MOCT), BitNature (BNAT), and NFTC coins were all endorsed.
During the discussions, Pan and Lin pushed the tokens and declared that ACE Exchange will become "Asia's most complete blockchain ecosystem for cryptocurrency trading." In order to lend credibility, the defendants also produced whitepapers and other documents.
The prosecutor claimed that in order to draw in new investors, the accused had manipulated the token prices on the market during the campaign.
Upon a notable decline in value, investors attempted to exchange their token holdings for New Taiwan dollars. The duped investors informed authorities about the purported scam when they were unable to get their money back.
According to the inquiry, this operation sold tokens and other blockchain items for over NT$2.2 billion, or approximately $67.48 million.
Pan and the other participants concealed the money in multiple places, including purchasing real estate as a means of doing so. In addition, Wang received NT$43 million, or about $1.3 million, of which he reinjected half to the exchange in order to raise the token's price.
Attorneys Ask for Sentences of More Than 20 Years in Prison
According to the investigation, the scheme deceived over 1,200 people, resulting in an estimated loss of NT$800 million, or roughly $24.56 million. The prosecutors suggested that Pan and Lin, as well as the other main suspects, get sentences of at least 20 years in prison due to the severity of the losses.
In addition, they recommended that Wang, who occupied a prominent position in a legal business and appeared to have contributed significantly to the plot, receive a minimum 12-year term.
It's important to note that since the inquiry began, the creator of ACE has faced charges before.
ACE's investee company Fu Hai Digital Innovation developed the "Alfredo Wallet App," which was used in the scheme to conduct "offline and over-the-counter transactions of virtual currencies."
The report claims that Pan and the other six suspects caused harm to over 162 individuals, with a loss of NT$340 million, or around $10.7 million. As a result, the seven defendants were charged with aggravated fraud, money laundering, and violating the Organized Crime Prevention Ordinance.
Reassuring its users that Pan and the other accused are no longer associated with the cryptocurrency exchange, ACE already dissociated itself from the suspects. It has also said that all operational conditions have remained normal and that they have been working with the authorities.
April 2024, Cryptoniteuae