David Pan, the founder and CEO of ACE Exchange, one of Taiwan’s largest and most popular cryptocurrency exchanges, has been arrested by the Taipei police on charges of fraud, money laundering, and breach of trust.
According to the police and a report from Liberty Times, David Pan and his accomplices allegedly defrauded more than 10,000 investors of over $150 million by manipulating the prices and volumes of various cryptocurrencies on the ACE platform, as well as diverting customer funds to offshore accounts and shell companies.
The police also confiscated about $3.2 million worth of cryptocurrencies and computers, mobile phones, and documents from Pan’s residence and office as part of their investigation.
However, the police suspect that Pan and his team have been the strike force in the promotion of shitcoins across social media.
These dubious currencies or “shitcoins” when invested into, inflate/rise over a short period of time and often result in huge losses for the investors, as the prices are manipulated by the creators and promoters
They are cryptocurrencies with little to no value or utility and are typically created as quick money-making schemes.
In October 2023, the Police launched an investigation into ACE Exchange and raided its headquarters and branches in Taipei, Taichung, and also raided Kaohsiung on January 3, 2024, arresting David Pan and 12 other suspects, including ACE’s chief operating officer, chief technology officer, and chief marketing officer.
Pan and his co-defendants face up to 10 years in prison if convicted of fraud, money laundering, and breach of trust.
The FSC, Taiwan’s financial regulator, has issued several warnings and guidelines to the public and the crypto industry, urging them to be cautious and vigilant about the risks and scams associated with cryptocurrencies.
The FSC has also announced that it will introduce a comprehensive regulatory framework for the crypto sector by the end of 2024, to protect the rights and interests of the investors, as well as to promote the innovation and development of the crypto industry in Taiwan.