Crypto Fraud Scandal In Taiwan: Founder Of Exchange ACE Arrested By Police

Crypto scams in Taiwan. (Photo; Doc. CryptoDaily)

JAKARTA - Taiwan was recently rocked by a fraud scandal involving ACE crypto exchange executives. According to a report from Taipei Times, local prosecutors have accused 32 people in a fraud case linked to the crypto trading platform, with a 20-year prison sentence recommendation for its four main operators.

David Pan and Lin Sekomong-hong, founders of the ACE crypto exchange, as well as Wang Chen-huan, chairman of the company, were among those arrested. The Taiwanese government stated that this fraudulent scheme had ensnared around 1,200 people with a total loss of USD 24.56 million (approximately IDR 398.61 billion).

Since 2019, the suspects have allegedly encouraged the purchase of virtual currencies, including native assets from the ACE exchange. Although Pan and Lin had promised to make ACE Taiwan's leading crypto trading platform, the value of the native asset actually plummeted, and investors were unable to convert their digital assets back into Taiwan dollars.

Prosecutors also alleged that the suspects had manipulated asset prices on the platform to attract more investors. Wang Chen-huan is accused of receiving $5.5 million and allegedly re-injecting some of the funds into ACE to increase asset prices, which ultimately deceived traders.

The recommendations given by prosecutors reflect the seriousness of the case, with Pan and Lin faced with a possible 20 years in prison, while Wang faces 12 years in prison. The case highlights the risks that exist in the crypto industry and the importance of transparency and stricter regulations to protect investors.