In a seismic development, the founders of ACE digital currency trading platforms, counted among Taiwan’s top three virtual currency brokerage firms, are now in custody, accused of orchestrating a crypto fraud scheme that defrauded over 100 investors of more than 1 billion yuan. David Pan and Lin Nan, along with their team, allegedly employed deceptive tactics, leveraging fake advertisements on social media platforms like Instagram and Facebook to lure investors into their fraudulent web.
The ACE Exchange Crypto Fraud Scheme involved Lin Nan using social media to promise quick riches through virtual currency listings on reputable exchanges, while Pan Nan bolstered the credibility of ACE exchange, creating an illusion of trustworthiness. Investors, however, were left with devalued or non-circulating “junk coins” and “air coins” as their investments plummeted.
UPDATE: ACE EXCHANGE FOUNDER ARRESTED FOR ALLEGED FRAUD
– David Pan, founder of ACE Exchange, one of Taiwan's largest crypto exchanges, was arrested on suspicion of orchestrating fraud
– Pan and a co-conspirator allegedly collaborated for three years, utilizing false social… https://t.co/occSUNxmf5 pic.twitter.com/Uot2o8VxhT
— BSCN (@BSCNews) January 4, 2024
Swift action by the New Taipei City Criminal Police Brigade led to the arrest of Lin, Pan, and 14 employees across multiple locations, resulting in significant seizures, including 111.52 million yuan in cash and virtual currency equivalent to NT$108 million.
This event follows heightened global scrutiny on crypto exchanges. CoinDCX faced allegations of fraud but refuted reports, while the former chairman of Bithumb, Lee Jeong-hoon, received an eight-year prison sentence over alleged fraud. These cases underscore the pressing need for comprehensive crypto regulation worldwide as digital assets’ popularity grows, emphasizing the urgency for collaboration between governments and regulatory bodies to safeguard investors and maintain the integrity of virtual crypto exchanges.
