May 30, 2024
Latest Cryptocurrency News

Founder of Ace Exchange Charged with Money Laundering

Prosecutors in Taiwan have taken significant action against David Pan, the founder of Ace Exchange, a local cryptocurrency trading platform. Pan, alongside six other suspects, was indicted on April 8, facing charges of money laundering and fraud amounting to losses of 340 million New Taiwan dollars ($10.6 million).

Allegations and Investigation

The Taipei City police, in January 2024, arrested Pan and 14 others allegedly connected to the case following raids on various locations, including Ace’s headquarters.

Prosecutors revealed that Pan was linked to the fraudulent cryptocurrency wallet service known as “Alfred” or “Afu wallet,” alongside a related crypto card.

The modus operandi involved luring customers with promises of high rewards through offline over-the-counter exchanges and fake investment groups. Once funds were deposited, investors encountered difficulties in withdrawing or found their accounts blocked.

Response and Clarification

Ace Exchange responded to the indictment, asserting that Pan’s actions were independent of the platform, as he had ceased involvement in day-to-day operations in 2022.

The firm emphasized that the wallet product associated with the fraudulent activity was developed by a third-party team and was not a service offered by Ace Exchange. They assured users of the platform’s normal trading and operating conditions, ensuring the security of user assets and smooth deposit and withdrawal services for all supported currencies.

Ace Exchange, a relatively obscure centralized cryptocurrency exchange founded in late 2018, handles an average daily trading volume of around $14 million. However, data from Traders Union suggests that it should be considered a “high-risk cryptocurrency exchange,” with a trust score of 2.78 out of 10.

As legal proceedings continue, the cryptocurrency community awaits further developments regarding the case and its implications for Ace Exchange and its users.

Image by wirestock on Freepik

Related posts

US Crypto Lobby Spending Set to Break 2022 Record

Robert Paul

US Officials to Transfer Sam Bankman-Fried to California Prison

Robert Paul

US Congress Urges Clarity on SEC Rule as GAO Investigates SAB 121 Impact

Bran Lopez

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.