Taiwanese prosecutors have taken legal action against David Pan, the founder of the local cryptocurrency trading platform Ace Exchange. On April 8, Pan was indicted along with six other individuals, as per an official statement from prosecutors. The charges against him include money laundering and fraud, which allegedly led to losses amounting to NT$340 million (US$10.6 million). In January 2024, Taipei police conducted raids on multiple locations, including Ace's headquarters, and arrested Pan along with 14 others suspected of involvement.
The investigation revealed Pan's association with a fraudulent cryptocurrency wallet service and related crypto cards known as "Alfred" or "Afu wallet." Prosecutors claimed that the group deceived clients through offline over-the-counter trading and deceptive investment syndicates, promising high returns. Once investors deposited funds, they faced difficulties withdrawing or found their accounts frozen.
A Taiwanese court ruled for the seizure of the defendant's assets, with confiscated assets valued at least NT$3.5 million (approximately US$110,000). In response to the indictment, Ace Exchange issued a statement on April 8, emphasizing that Pan's actions were unrelated to the platform. They clarified that Pan ceased involvement in day-to-day operations in 2022. Additionally, the wallet product linked to Pan was developed by a third-party team commissioned by him, not by Ace Exchange.
The exchange assured users of the safety of their assets and the smooth operation of cryptocurrency and New Taiwan Dollar deposit and withdrawal services. Ace Exchange denied reports suggesting its involvement in operating multiple franchise stores or facilitating cryptocurrency cash transactions through ATMs. A spokesperson clarified that the platform has never established dedicated stores or engaged in services involving cash transactions with cryptocurrencies.
Ace Exchange, a relatively lesser-known centralized cryptocurrency exchange based in Taiwan, was founded in late 2018. According to CoinMarketCap, the platform processes around $14 million in daily transactions.
